Usually the 1st won't go higher than their judgement unless they are bidding to win the bid and take title. Any amount they bid over their judgement goes to pay taxes and then junior lien holders in the order of their position. If the 2nd received any funds it would reduce the debt.
You should be able to contact the Master In Equity Court and ask if the 2nd received any funds.
I used to manage a trustee department for a major bank and the skinny on the additional funds is as such;
Once the 1st mortgage is paid off the balance of the funds will go to an attorney and then disbursed to the 2nd lien holder.
When did your home foreclose? Do you know if your mortgage had a "recourse" clause? Who were your lenders?
There were lenders that participated in the National Mortgage Settlement Act that does not allow the mortgagor to collect the unpaid balance from the homeowner. Call me if you'd like more information.
Best of Luck,
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
And based on my understanding the proceeds from the auction go to pay for the auction costs, tax liens, the first position and then to the second position. If the second position bank did not receive any money from the auction it was probably because the amount was not enough to cover the other debt.
And to be honest, if you are being sued, I would advise you to talk with an attorney.
Jose Dias, REALTOR
If the money on the 2nd was used for the sole purpose of the property that was foreclosed on and if this was your primary residence, there may be no taxes due on the difference.
I am not an attorney and would suggest you speak with one to know what your rights are and if in fact you do owe anything.
Did you initially attempt to short sale the property or just allow it to go to foreclosure? Did you try and work with the bank? These and other questions are ones that an attorney will want to know.
If you would like me to recommend a very good real estate attorney in the phoenix area, please contact me at 602-799-5239.
Keller Williams Sonoran Living
It looks like at the very least you will have to pay +$60,000.
You might have been better off just keeping the house!
The second position note holder was not paid the full amount to release their lien. (Likely the $95,000 bid by the first position bank was their principal, interest owed and all of the related fees) Likely the second position note holder wasn't paid anything. So they have sued you. There are several strategies you can take depending on your financial position and how you owned that property. The best source for that would be a Real Estate attorney. Most consultations are free before they starts working. If you need a referal I would be happy to give you one from local source that is good.
Loan Officer/Real Estate Asset Planner
Financing Solutions for Arizona Real Estate since 1993
American Financial Lending, Inc.
20860 N. Tatum Blvd, Suite 160
Phoenix, AZ 85050-4277
602 277-3800 w
602 631-9788 f
602 524-2401 c
602 912-9438 h
BK # 0910057 NMLS LO ID # 284875
It does sound like you need to speak with a Real Estate attorney to find out your leagal options.