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Ellen
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In Arizona, is a 2nd mortgage lienholder entitled to request

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In Arizona, is a 2nd mortgage lienholder entitled to request distribution of excess proceeds from trustee sale foreclosure by 1st mortage when the trustee sale occured after filing of Ch 7 bankruptcy and before discharge, and credit report shows 2nd mortage charged off prior to bk and updated with loan discharged in ch7 bankruptcy?
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I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

The debtor's personal liability is discharged by a chapter 7 bankruptcy. However the lien remains on the real property. Therefore in a trustee sale, the excess over the first mortgage would be payable to the junior lienholder prior to any proceeds being paid to the prior owner.
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