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
you most certainly can
What happends if it goes to the foreclosure?
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.