If it is the 1st taking this to sale, the second has the option of either bringing the 1st current, or being completely wiped off – unless the amount of the bid on the 1st leaves $ left over after fully paying off the 1st, that money would spill down to the second. You would still owe property taxes and HOA, and IRS liens may be a problem. Judgements and mechanics liens would be wiped off as well if they were recorded after the 1st.
What’s interesting to me in this case is the speed in which the process took place. I was under the impression that they were not filing NODs for a average of 8 months after payments stopped. Add 3 months under NOD and 3 weeks under NTS and you are pretty close to a year. Was this a private/small bank lender?
