second loan after trust deed sale?

[kmjy]

What is the name of your state? CA

I had a home under my name foreclosed (through a trust deed sale) by a 1st mortagage last year. tehre was a 2nd loan that was opened as a purchase money whcih ws sold to a different loan company beofre the foreclosure. At the trust deed sale, apparently 2nd loan was not notified of the sale. I did tell the loan company that holds the 2nd loan that the property was foreclosed - the 2nd loan company is continuing to contact me even 4 months after the foreclosure.

I was told taht the purchase money loan gets wipted out after the trust deed sale by a 1st but when I got Form 1099-A from the 1st, the box for the loan being "recourse loan" was checked off even though the foreclosure was though trust deed sale.

My questions are:

1) Does the purchase money 2nd loan really get wiped off?
2) Can the any of the loans (1st or 2nd) be regarded as a recourse loan even if the foreclosure was doen through trust deed sale?
3) what will happen to the 2nd loan?

[FlyingRon]

Originally Posted by kmjy

1) Does the purchase money 2nd loan really get wiped off?

No, when the foreclosure sale happens the monies involved go to the tax man first, then to pay off the first mortgage, and then to the second. If there isn't enough money to pay off the loans you are still responsible.

So your question is to the sheriff or whoever handled the foreclosure is how much the proceeds were and how was it distributed. Chances are since you didn't get any money from the sale, that there wasn't enough to pay everybody off.