Question about State of Minnesota Anti Deficiency Law

[treyman04]

Minnesota Anti Deficiency Law states: judgments are restricted to the fair market value of a foreclosed property less the unpaid balance of the foreclosed loan.

How does this work if you have a 1st (Primary) and 2nd (Home Equity) lender and the estimated value of the home is greater than the unpaid balance on the 1st loan

Example:

1st Loan $115K

2nd Loan $34K

Estimated Home Value $139K



Thank you kindly for any helpful information

 

[army judge]

In your example a $139k home with a $115k mortgage and a $34k second the judgment would be for $139k.

The first mortgagor can go after the full note, $115k.

Even though the second mortgagor holds a $34 k note, all she can take is $24k.

So 24 + 115 = $139k.

The second mortgagor loses $10k.