Deep Mess After Purchasing 2nd Mortgage HELP!
Ok, I purchased a 2nd mortgage from the court house, Trustee Sale. Now that I own the 2nd , what can I do to get the house? The person who lives there tried to file chapter 13 bankruptcy, we went to the court, and the judged denied him. He owes back pay on the first, we spoke with the lender of the first and they claim the 1st is going to foreclose. My question is what can I do? I was told by multiple people that I should be able to also obtain the first since I already own the 2nd, Then I was told that I have to wait till the first forecloses and I will be able to purchase it… I have no idea what to do at this point, I have a real estate attorney that has already charged me $1200 and she seems more confused than me. She wants me to now “hire” her so she can start sending letters out to people? Can someone please help me out. I kinda jumped the gun on this sale, a friend of mine went to the courthouse in my behalf purchased a 2nd thinking it was a 1st now were stuck!!!! HELP!!!
Thanks
How much is the first? How far behind is the owner?
How much is the second? how much did you pay for it.?
Find an attny who understands this process.
When the 2nd forecloses, and you buy the property at the Trustee's Sale, you need to payoff the 1st. You should be the owner of this property and have Trustee's Deed. Did you not get the Deed when you purchased this property?
Yes,
We actually have the Deed now that we purchased the 2nd, so are you saying we should be able to buy the 1st before the 1st foreclose?
No, just pay off the first. Theres nothing stopping you from paying on a lien that is attached to your property even if it is not in your name.
Quote:
On 2004-11-02 22:08, brazielr wrote:
Yes,
We actually have the Deed now that we purchased the 2nd, so are you saying we should be able to buy the 1st before the 1st foreclose?
Fire the attorney immediately.
IF the 1st mortgage is low enough that you have a deal then just pay them off.
If they are not then you may run into a problem but you should try to purchase the mortgage at a discount.
I'm hoping you are a cash player because you're going to need access to cash to finish this deal.
Well, you have a few choices,
1. You can give them cash and payoff the loan.
2. You can re-instate, and keep making payments to keep it curent.
3. You can get a loan, and put the 1st in your name.
ok that sounds good, We are actually talking to the lender who is giving us the run around, They have to send the loan to a different department before we can purchase the 1st. No say we did not purchase the 1st but instead we make it current and pay the back pays, does the original owners name come off the 1st? Also, we should be able to evict the original owners right? We are in California, and I know the laws are a little different.
Quote:
On 2004-11-03 01:41, brazielr wrote:
ok that sounds good, We are actually talking to the lender who is giving us the run around, They have to send the loan to a different department before we can purchase the 1st. No say we did not purchase the 1st but instead we make it current and pay the back pays, does the original owners name come off the 1st? Also, we should be able to evict the original owners right? We are in California, and I know the laws are a little different.
If you decide to make the 1st current and keep up the payments, you are leaving everything in place, and therefore the original owners name will stay on the loan, until you refinance or payoff.
And, yes, you are the owners and you can evict the original owners.
If you own the 2nd and the 1st has not yet foreclosed, you have the right to bring the 1st current and take over payments.
If the homeowner's redemption period is over, file for eviction and GET THEM OUT.
If the sale has already happened I don't think the bankruptcy can affect your interest. The underlying loan is dead.
Look through the paper for the attorneys that do the foreclosure filings, find one that ISN'T the one who works with the first mortgage company, and get yourself a knowledgeable attorney!!
You're part right. You do have a right to reinstate the 1st but you don't have a right to take over payments. 1st loan holders just don't exercise the due on sale clause because if they did nobody would want to payoff 2nds and continue making payments and a lot more houses would go to foreclosure.