foreclosing on a seller-financed 2nd mortgage

[kgraham]

What is the name of your state? FL

I sold my house in Florida last year and provided a 2nd mortgage to the buyer. She is two months behind on the payments and the balance is due this month(ballon). She is delinquent on the property taxes and has an IRS lien on another property in another part of the state (which is in foreclosure). If I foreclose the 2nd mortgage on this property, what is my exposure to the first mortgager, the tax collector, and the IRS?

[FlyingRon]

Your junior in standing to the first and the tax man. When the foreclosure completes if there's enough money to pay off the first and the taxes you get what's left over (up to the amount of your loan). If you don't get it all, you can pursue a deficiency judgement against the borrower for the balance (but it might be difficult to collect if they are in real bad shape).