Posted by John Merchant on July 02, 2003 at 19:29:03:
Don’t know for sure what a “line of credit” is, insofar as knowing its creating a recorded lien. Obviously depends on state law.
Since you say that the mtg. co. is foreclosing on it, it is apparently a mortgage-securing lien.
And the test of whether its foreclosure would wipe out the other mortgage, I’d suppose, would be whether it was recorded before or after the mortgage. So look at the time stamp on both to see when they were recorded.
Just as in the birth of twins, they can’t be recorded (or born) simultaneously & one is a little older or younger than the other,if only by seconds, and the one that is recorded or “born” first (mortgages, that is) is superior to the other & is not extinguished by later recorded liens.
If it is the first recorded mortgage, even if by mere seconds, that’s being foreclosed, it’s effectively extinguishing the other one…not the debt, but its lien. Since you wouldn’t have assumed that debt which was secured by the now defunct mortgage, you wouldn’t have to worry about it. Or pay it.