HELOC Lender Bought Out First Mortgage

[sabramh]

Home in Georgia was primary residence. There was a first mortgage of $150K and a HELOC for $250K. The credit union (where the HELOC is) bought out the first and foreclosed on us. They then sold the house for $193K, leaving a deficiency of approximately $225 (with all fees added in.) Credit union foreclosed June 2010.

Questions:
Since the credit union bought out the is the deficiency still considered unsecured debt?
Or do the rules of seeking a deficiency in a 1st mortgage foreclosure now apply to them?

In other words - it is my understanding that with a first mortgage, banks have 30 days after foreclosure to get a deficiency judgment. In a HELOC deficiency, the time limit extends to several years. Am I still open to deficiency judgment in this situation where the second mortgagor bought out the first and then foreclosed.

Thanks!

[Mr. Knowitall]

Change in the ownership of a debt doesn't change whether or not it's secured. Nor does it change the rules the owner must follow to get a deficiency judgment on either mortgage.

[sabramh]

What about subrogation? If the junior lienholder becomes the senior, when buying out the first, and they obtain the rights of the senior lienholder, do the laws of foreclosure relating to senior lienholder not then apply to them?

Just trying to work through it all in my brain..........