§667-57  Suspension of foreclosure actions by junior lienholders.  (a)  Upon initiation of a foreclosure action pursuant to part IA or part II by a foreclosing mortgagee, no junior lienholder shall be permitted to initiate or continue a nonjudicial foreclosure until the foreclosure initiated by the foreclosing mortgagee has been concluded by a judgment issued by a court pursuant to section 667-1.5, the recording of an affidavit after public sale pursuant to section 667-33, or the filing of an agreement under the mortgage foreclosure dispute resolution provisions of section 667-81.

     (b)  Upon initiation of a foreclosure action pursuant to part II by a foreclosing mortgagee, no junior lienholder shall be permitted to initiate or continue a nonjudicial foreclosure during the pendency of a stay pursuant to section 667-83; provided that a junior lienholder may initiate or continue with a nonjudicial foreclosure if:

     (1)  The junior lien foreclosure was initiated before the foreclosure action by the foreclosing mortgagee; or

     (2)  The junior lienholder is an association and has not been provided notice of the foreclosure action, pursuant to section 667-21.5, or has not received written notification of a case opening pursuant to section 667-79. [L 2011, c 48, pt of §6; am L 2012, c 182, §31]