What if house sells more than 1st mort amount - what about 2nd?

[hnhlvr]

Please someone explain this.

I checked Foreclosurepoint.com and it says the estimated opening bid for my house is going to be $431,000 and the estimated selling amount will be $517,000.

Now, we only owe $421,000 on our first, which is the bank who's been documented on the notice of defaults, and we owe $128,000 on our second. Will the remaining amount, say the house does sell for more than $421,000 go to pay off the second mortgage?

Our first mort. is in default and being auction, but we just got a collections notice from a collection agency trying to collect on the second and I wonder where the extra funds will go.

What will happen here?

Thank you.

[HHM]

Any extra funds will go first to "costs of sale" and then to the next lien holder, the 2nd mortgage if there is anything really left over.

Basically, the balance due on the 2nd mortgage becomes an unsecured debt for which they can pursue you personally.