Re: Received a court summons. Is this normal? - Posted by Millie I.
Posted by Millie I. on December 22, 1999 at 23:50:51:
Every foreclosure suit that I have seen always lists the the homeowner plus all other lien-holders as defendents.
When the lender forecloses on the first mortgage, they are legally required to notify all other lien-holders, because if the foreclosure goes through successfully, it means that all other lien-holders ‘may’ lose all their interests in the property. The notice allows other lien-holders to come foreward to buy off the first mortgage if they so wish in order to save their own interests ( or to buy wholesale if the price is right). Also, if the property was sold at foreclosure at a higher price than the balance of the first mortgage, there is a chance that the second or third lien-holder may have a little money coming back to him, (slim chance, but does happen).
This is how it works in my county, there will be some variation in other states and counties. ( I am just an investor like you, I am not an attorney). The best way is to call the foreclosure lawyer that sent you the summon. The foreclosing lender will be paying for the time their lawyer spends to explain details to you. You could ask your own lawyer, but you will have to pay him, so don’t spend your own money unless you need to.
Good Luck and relax, I don’t beleive that you are in trouble, this may be an opportunity if the cards play in your favor. Check it out.