Subordinate lien on a house being sold.?

Question

how does this lien get resolved when the mortgage co. has gone under?

Answer 1

It would still need to be paid.  That means more than likely, the seller will have to pay unless they make some sort of financing contingency where you pay for it.  However, in order to buy a house, you would have to get a clean title which means that it will have to be paid off before the house is titled under your name.

Don't you wish every loan was forgiven? :)  The other responder has a good rec.  Try the state bank.  I'm surprised you (I'm assuming you're the seller) were not notified of the new servicer?  The money has got to go somewhere.

Answer 2

Contact state banking to find out what company is now servicing the payments.