Advice From The Pro's That Buy The Seconds
House value 125k, 2nd being foreclosed and had a value of 25k. 1st has about 70k left on it and has not been foreclosed.
What's the best approach? Buy second at the sale and try to negostiate on the first? Let the bank take the second and wait for the first to foreclose or try to negotiate if the HO can be found?
Any other ideas or suggestions?
Thank you.
You could approach the 2nd mortgagee and offer $20,000 for their mortgage.
Since they are confident that they'll be made whole in an executed foreclosure, they have little reason to heavily discount their mortgage.
Then, as 2nd mortgagee, continue the foreclosure process.
You may or may not end up with the property, but you'll get the return of your investment, and then some.
How does that work, if I buy the second prior to foreclosure and foreclose before the first? When the first forecloses, what happens to me? If the first doesn't foreclose do I try to buy it out at a discount?
2nd scenario, if no one buys the second at foreclosure and then the first forecloses at a later date, What happens to the second? is it erased or would the buyer of the first still be responsible to the 2nd?
I always assumed that if the first was foreclosing, you didn't need to worry about any others. Not sure that is true if the second forecloses 1st???