Can The Second Do This?
I just talked to a second and they said they are trying to get the reinstatement from the first so that they can reinstate and continue on with their foreclosure. The first is getting ready to foreclose in two weeks. Can the 2nd get the reinstatement without the consent of the homeowner? Why doesn't the second just go to the sale to protect their interest?
Correct me if I'm wrong but here's usually what happens: If there are two liens and the first is foreclosing, the second almost always will get wiped out at the auction. A lot of the times, the second lien holder will reinstate the first and foreclose on the amount (required to bring first current plus fees) themselves in order to protect their position.
Every lender is only looking after its own arrears
That's what they are attempting to do, but the 1st is not being very helpful(which is good for me) The second is waiting for the reinstatement and a valuation on the property. Just a little over two weeks till the sale date but I am trying to work a deal with home owner. What happens if the second reinstates the first, i get title from the homeowner with the intenetion of reinstating the first? I guess I would need to bring the second current. Would that include what they paid to reinstate the first or just what is overdue on the second? The homeowner is trying to sell, but I think it will be either me or bankruptcy and he may be leaning towards bankruptcy to get more time to sell(he has about 100k in equity)[ Edited by jllaco on Date 02/11/2004 ]
The second mtg holder has every right to protect their security. They are attempting to advance the fees to the first and then foreclose on the property.
If you take a deed you will be responsible for all debt, fees, advances, impound shortages, legal fees, www.etc.etc.
In brief, you take the deed and you owe the whole enchilada. You may be better off buying this property at the auction. You need to start adding up all theses expenses to see if it's a "go or no go" situation.
Either way or anyway I acquire this property, wouldn't I still be paying all the same fees?