As a Second Note Holder Can the Primary Note Holder Cut Me Out of Foreclosure

[Ozlowe]

My question involves a mortgage in the state of: Ohio
I own a second note on a property that is going into foreclosure. The primary note holder offered me a very small payoff to settle the note. If I don't accept this payoff, can they cut me out of the process all together or should I take the money and run?

[flyingron]

They don't need to offer you anything. There are no non-judicial foreclosures in Ohio anyhow. When the thing goes to the court process and provided the sale occurs for at least 2/3 of the appraised price if the sale doesn't net enough to clear the primary lien, you'll get nothing and your security will be extinguished. You do have (for two years) the ability to bring a lawsuit for deficiency against the borrower.