What happens to a second mortgage when a home has been foreclosed on. Do I still owe the balance or is it dull & void.
Unfortuneately the second mortgage holder and the first mortgage holder can still sue for their money. In the state of Georgia the mortgage company that foreclosed is required to "confirm" the sale within 30 days of the foreclosure but our attorney has shared with us that the mortgage company can still sue on the note even if they haven't "confirmed" the sale.
Confirming a foreclosure sale consists of the mortgage company proving to the court that the foreclosure was handled appropriately and per the laws of Georgia, so that they can pursue a judgement on the amount of deficiency (between what is owed and what the property is worth the day of the foreclosure).