Can a lender foreclose on a second lien if the first lien is current?

The liens are with two different companies, and the property is currently under value because of the real estate market in our area. The second lender would not profit if the property was sold in foreclosure.

Where is the property located? We can give you more specific details about the laws/issues in the state where the property is located.

To continue with poster #2's scenario...

Lender B can foreclose on its lien if payments are not current. If the property is sold at a foreclosure sale, the purchaser buys the property subject to any liens which are SUPERIOR to Lender B's interest in the property (Lender A's liens are superior to Lender B's interest in the property)...also, tax liens, any liens by the U.S. government, and other types of liens are not wiped out by the foreclosure but continue.

So, purchaser would own the property, but the mortgage of Lender A would not be in his/her name, but the prior owner's name...if the prior owner stopped paying on Lender A's loan, the property again could be sold at a foreclosure sale and if the purchaser who bought Lender B's "interest" at Lender B's foreclosure sale did not buy at Lender A's foreclosure sale, then that owner would be SOL and whoever bought at Lender A's foreclosure sale would have the "superior" interest in the property...

The second lender would have to buy out the first lender first, then he would forclose on you. Then after he didnt get his money back he would sue you, get a judgement and then garnish your wages.

in short, yes. Any lender can forclose on their lien if you are not making payments.

Lets say lender one is named A, and Lender 2 is named B.

A has a senior lien on your property, B has a junior lien. B can forclose on your property without naming A in the forclosure. A's lien will pass to the buyer at the forclosure sale. So, B can forclose on its own lien. From what I know, A cant forclose on B's lien, but if A forcloses on their lien then they have to let B know. So after the sale A gets their money, if any money is left B gets it to pay off their lien, then you get the rest if anything is left.

Oh, they will get their money. Maybe not a profit, but you were given the cash and they are entitled to it back. After they sell the property they will be able to get the rest of the money owed them from any judge. They can use collection agencies to get it, which they prefer, or garnish your wages and tax returns if you are uncooperative.