If the first mortgage lender forecloses, the second mortgage or HELOC lender is generally named in the case, and the sheriff sale cuts its lien off the property. The debt itself does not disappear, and that lender may still try to collect from you personally.
Every lien on the house has a place in line. Sale proceeds pay the foreclosing first mortgage, and anything left over goes to junior lienholders, such as a second mortgage or HELOC lender, before the former owner receives any of it. When the sale brings too little to reach the second, its security is gone, but the note you signed remains a debt it can pursue. It works the other way too: a HELOC or second mortgage lender can bring its own foreclosure even if your first mortgage is current, although a buyer at that sale takes the house still subject to the first mortgage.
If you are working toward a solution, bring the junior lender in early. A short sale needs its release, and it often settles for a fraction of the balance because it would otherwise get little or nothing at a sheriff sale. Get any release and any waiver of the remaining balance in writing. If a second mortgage lender contacts you after a foreclosure to collect, talk to Legal Services of New Jersey (1-888-576-5529) or a New Jersey attorney before agreeing to pay, since the right answer depends on the loan documents, the timing and whether the debt could be addressed in bankruptcy.
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Educational information, not legal advice. Your own court documents control your deadlines; a licensed New Jersey attorney can confirm what applies to your case.