Escrow & Title
A NH property that was foreclosed and sold at a foreclosure sale still has a second mortgage on it. The second mortgage lien:
AAutomatically becomes the first lien after foreclosure
BIs typically extinguished by the foreclosure if the first mortgage was foreclosed and the second was junior✓ Correct
CRemains in full force against the buyer at the foreclosure sale
DMust be paid within 30 days of the foreclosure sale
Explanation
When a senior lien (first mortgage) is foreclosed in NH, junior liens (second mortgages, junior judgment liens) are typically extinguished by the foreclosure process. The foreclosure sale cuts off junior interests.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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