First Weber Group
Certified Distressed Property Expert
This is a great question and you have received some good advice here but please keep in mind that you are receiving it from agents who may or may not know AZ real estate law. Your best solution is to consult a real estate attorney. If you need some references for attorneys I would be glad to provide some names. I am sure that most of the agents responding to your question have names they could recommend as well.
I wish you the best of luck and God bless...
It is my understanding that if your the first & second liens are from two separate unrelated companies, then holder of the second lien to cannot start foreclosure proceedings unless they buy the first lien, which is highly unlikely in this market.
If the the first & second liens are from the same company, the second CAN foreclose.
Consult a real estate attorney to be sure of what your options are in regards to the law any your particular situation.
Good luck & all the best,
Roswell Moore, CMPS
Certified Mortgage Planner
If a second lien holder forecloses, the first lien holder can still take it from them, but the second lien holder has the right to pursue the deiciency judgements in many states and I think that is why the 2nd lien holder would foreclose.
It only makes sense for them if there is equity in the property to force the sale and pay the 1st and 2nd back the money.