As the holder of a subordination agreement in the state of Washington, may I foreclose on the property and force the first po...
Full Question:
As the holder of a subordination agreement in the state of Washington, may I foreclose on the property and force the first position lien holder to foreclose as well, or am I just in a holding pattern in the event that the first lien holder forecloses at some point and there is enough money left from a sale to pay me?
11/10/2007 |
Category: Debts and Credit |
State: Washington |
#12009
Answer:
A junior lien holder who forces the sale of the real estate must either pay off the senior lien or make arrangements to make payments on it to prevent it from being foreclosed. The foreclosure of a first lien destroys the right of a junior lien holder to foreclose, but the foreclosure of a junior lien does not affect the right of a senior lien to foreclose.