Good morning Lance,
I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.
Your fears are well supported by the law. If the second note holder forecloses on the property, when it is sold at auction as is required under the law, the first mortgage must be paid in full before the second note holder can collect a penny, after the first is paid in full, anything left over is available to the second note holder to cover the debt, penalties, interest and legal fees. Only if there is any money left from the sale after both the first and second note have been paid would you be entitled to the overage of the sale price.
If the first mortgage is not fully paid by the foreclosure sale, then the first mortgage note holder would still be allowed to civilly sue you for any money that remains owed after the sale prices is paid to them.
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I wish you and yours the best in 2016,