Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Am I able to recoup my money from this transaction
Honestly, probably not. This is because you voluntarily paid money to the bank holding a mortgage on the property for the borrower. So the borrower did owe the bank the money, and they could legally accept it, even if you werent' aware that they were a 2nd mortgage holder and not the 1st mortgage holder who was foreclosing..
The 2nd is happy to accept that money because it is money they would never have gotten once the 1st foreclosed and wiped out their 2nd so I kind of doubt that they will voluntarily refund it to you.
I am afraid that you are stuck here..
I am sorry that the news isn't better.