What happens to the lien filed by 2nd mtg?

[daylate]

I was reading another thread and this question popped into my mind-maybe the answer is here somewhere but I'm too tired to look.

Discharged, house surrendered. 1st foreclosed. House will sell at sheriff sale. Lets say it sells for enough to pay off 1st and back real estate taxes. Nothing left for the second. What happens to that lien?

[bcohen]

The HELOC's lien is extinguished when the first mortgage and/or county taxing authority forecloses. The HELOC lienholder gets nothing, and has to write off the balance just like a credit card company or other unsecured creditor would. Since you have already filed for bankruptcy and had the debt discharged, the bank cannot come after you for the balance.

[drowning123]

My 1st filed a complaint with the court to begin the foreclosure procedure. My 2nd was named as one of the defendants. Is that normal?

[daylate]

It was on mine. Eventually,the 2nd holder just didn't respond and i htink at some point they were dropped as a defendant-probably reflecting the situation bcohen describes above.