2nd mortgage rights

[tazangel]

In Iowa, I hold a second mortgage on a family farm. We have received notice the homeowners are in default of the first mortgage and foreclosure proceedings have started. What should I do now...Am I out this money(it is less than the first mortgage). They are not in default with me(usually late by a few days every few months and right now .....) Should i contact the first lien holder and make them aware of my interests also..Can they sell the property even with my recorded lien on the place??

 

[HomeGuru]

In Iowa, I hold a second mortgage on a family farm. We have received notice the homeowners are in default of the first mortgage and foreclosure proceedings have started. What should I do now...
**A: you should reply to the foreclosure complaint and join in.

*********

Am I out this money(it is less than the first mortgage).
**A: it depends on the equity and the sale proceeds if foreclosed on.
****************

They are not in default with me(usually late by a few days every few months and right now .....)

**A: if does not matter since the first mortgage holder can and did file foreclosure.
************
Should i contact the first lien holder and make them aware of my interests also..
**A: yes, but they are already aware of your interest via title report.

*****************
Can they sell the property even with my recorded lien on the place??

*A: yes, if the Buyer accepts or through foreclosure sale.