[plowlane]

The same lender held 1st and 2nd mortgage when foreclosure was implemented. The lender purchased at auction for the amount of the 1st mortgage. Am I still responsible for the 2nd mortgage? Do I have to repay in Tn?

[Fr_Chuck]

Please explain this in more detail
Let me see if I have it close.
Your home foreclosed. It had a first and second mortgage.
The home sold at foreclosure auction.. the money that came in did not cover all of the first and second mortgage.

Actually it sounds like the lender bougt it by bidding the amount of the first mortgage and no one else bid any higher?

If your mortgage papers state that at foreclosure you will still owe the balance (and yes this is not uncommom) you will owe the difference between the loans and the money brought at the sale. Plus the sale costs which is taken out of the money paid for property.

So yes it is very likely you will still owe all of the second and even a little of the first

[George_1950]

Both mortgages are based upon separate promissory notes, so, yes, I believe you will owe for both. Just curious: are the mortgages on your home and are you residing there still?

[vagentlemanroa]

I had two mortgages on my house at foreclosure. The first or primary will get the money for the house. If they make a more than the listed amount they state they want for you to pay off your loan then the rest after fees and the such goes to the 2nd.

For me the 2nd decided to sell the loan and write it off. To the first there is no second mortgage. I still owe the money but bankruptcy will take care of anything else you owe. The mortgage companies will try to stiff you. You do not have to pay it back. Bankrupt it all.

[vagentlemanroa]

The 2nd sold the loan and wrote it off before the house sold. My house sold as a profit. I am not sure what will happen in that case. But for you I sounds if you owe.

Don't let them 1099 you for the difference. To the tax man will appear as taxable income and you will be on the hook with the IRS.