Buying 2nd Mortgage

A mortgage broker refer me to a women who is behind on the 1st and second mortgage. He said she is approve to get refinancing. Can I buy the 2nd note holder at a discount and wait for the refinance to go throught to get my money? I want to to buy the 2nd for around 14k.

1st 120k

2nd 24k



Arv 180k

Comments(3)

  • sanjosee2nd October, 2006

    you most certainly can

  • ibuyhouses203rd October, 2006

    What happends if it goes to the foreclosure?

  • sanjosee3rd October, 2006

    You have the option of bringing the 1st current as a junior lien holder & then to bring your own foreclosure action.

    You can also bid at the sale of the 1st to protect your position.

    If the 1st does go to auction & there is an overbid , the overage will be distributed to the next secured liens in order until it is satisfied & then it moves down the ladder to the next lien.

    If there is no overbid your 2nd position gets wiped off as a secured lien.

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