Why must a junior mortgagee be named in a senior mortgagee's foreclosure action?

A junior mortgagee must be named in a senior mortgagee's foreclosure action primarily to protect their own interests. If a foreclosure proceeds without including the junior mortgagee, the junior mortgagee's interest in the property could be extinguished. This means that if the property is sold at foreclosure, the junior mortgagee could lose their claim to any remaining value in the property after the senior mortgagee is paid. By being named in the action, the junior mortgagee is given notice of the proceedings, ensuring that they have the opportunity to defend their lien and assert their rights.

While the ability to dispute the foreclosure or receive a portion of the sale proceeds can also be relevant aspects of being named in the action, the fundamental reason is about protecting the junior mortgagee's secured interest. Their rights can be compromised without their inclusion in the foreclosure process, making it crucial for them to be a party to the action.