I am presuming that in this hypothetical, Bank A can then directly pursue the property owner to recover their $100,000. So Bank A can’t recover via foreclosure proceedings, but can go after the homeowner directly.
Yes the senior mortgage could technically start the foreclosure process and get paid first in that case. (For bar exam purposes, that is how you would see that tested. But if a junior mortgage forecloses, the senior mortgage would not be paid if it does not otherwise take part in the foreclosure process and on the bar exam, it typically doesn't. If you have a specific example you are thinking of though, please let us know!)
@@JDAdvising ok Gotcha But in your example since the junior is foreclosing and the senior is not participating that is why senior doesn’t take first. For example in the same example you have but the senior intervenes or joins in on the foreclosure with the junior mortgage Then it would Senior mortgage Junior c mortgage Junior b mortgage
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Excelkent video. These are some of my favorite videos on this channel.
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This was so very helpful...thank you!!
You are so welcome!
I am presuming that in this hypothetical, Bank A can then directly pursue the property owner to recover their $100,000. So Bank A can’t recover via foreclosure proceedings, but can go after the homeowner directly.
Bank A will be attached to the mortgage, if the next purchaser defaults in the future, Bank A may bring a foreclosure action.
God bless this video
Glad it was helpful!
Thank you!
P.S. your nails are on point 💅
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Thank you so much!
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this was great, thank you!
You're so welcome!
Can’t the senior mortgage attach it self to the foreclosure and thus it gets paid in that instance ?
Or am I mixing up a rule
Yes the senior mortgage could technically start the foreclosure process and get paid first in that case. (For bar exam purposes, that is how you would see that tested. But if a junior mortgage forecloses, the senior mortgage would not be paid if it does not otherwise take part in the foreclosure process and on the bar exam, it typically doesn't. If you have a specific example you are thinking of though, please let us know!)
@@JDAdvising ok
Gotcha
But in your example since the junior is foreclosing and the senior is not participating that is why senior doesn’t take first.
For example in the same example you have but the senior intervenes or joins in on the foreclosure with the junior mortgage
Then it would
Senior mortgage
Junior c mortgage
Junior b mortgage