Where a first mortgagee completes a foreclosure action

Question

Quizplus · Accepted Answer

When a first mortgagee completes a foreclosure action, any subsequent mortgages (e.g., a second mortgage) lose their rights in the property. The subsequent mortgagees do not have a claim against the property anymore and can only seek to recover their losses from the mortgagor (the original borrower). This is because the foreclosure action extinguishes the rights of parties junior to the foreclosing mortgagee's interest in the property's title.

Where a First Mortgagee Completes a Foreclosure Action