Foreclosure. Purchase 2nd?? In Colorado
I have practically no knowledge concerning foreclosures. Because of the extreme differences from state to state, I would prefer responses from any who are in Colorado and have actual experience on the subject. A few weeks ago a foreclosure notice in our small town paper caught my eye because we have been looking for a couple years for a larger home and we knew who owned this one at one time. I talked to the present owner and he says they were late with a few payments and their lawyer is getting it all straightened out. He and his wife have separated so he thought they might put it up for sale after it gets straightened out. I asked him if they would let us see the home and property so if they put it up for sale we would be more informed about it. He hasn't called me and they won't answer the door nor answer mailed letters. The foreclosure auction was set for 7/16/03 but was postponed until 8/20/03. I assume this is because the lender is allowing more time for the owners lawyer to get things "straightened out". The 1st appears to be between $83,000 and $86,000 and the 2nd is for about $45,000.
Since they won't talk to me and we want the property, would buying their 2nd be a bad idea? If they get the foreclosure straightened out with the 1st, what garantee will I have that they will meet the payments to me on the 2nd. What are their options on the 2nd?
The house and property are probably worth at least $30,000 over the 1st mortgage. We are not trying to make a profit on this foreclosure. We are trying to find a property we can give TLC and have some space for our "toys", a workshop, and room for family get-togethers. We now have a small home, garage and small yard and this foreclosure has about 1 acre and about twice the house space and outbuildings. There just aren't enough of this type of property on the market in this small town.
I am about 10 years from retirement(56 this year) and would like to get something with more space NOW.
"Thank you" to Brian Dawson for earlier advice by email.
Sorry this is so long and will really appreciate any helpful advice.
Thanks,
Terry
[ Edited by bergvw on Date 07/30/2003 ]
If you were to buy the second and they worked things out with the first, there are no guarantees you will ever get any payments, if not you would have to foreclose on the second. If the second was recorded after 1986 you as second could cure the first (stopping the foreclosure) and then begin foreclosing on the second adding the cure amounts to what you are owed. By doing this you leave the first in place and continue making payments on the first.
I have done several foreclosures in Colorado since 1987 and can tell you that every deal is a little different so If you PM me with contact info. I would be happy to assist you.
If the second was recorded after 1986 you as second could cure the first (stopping the foreclosure) and then begin foreclosing on the second adding the cure amounts to what you are owed. By doing this you leave the first in place and continue making payments on the first.
Can you explain this statement a little for me. You dont have to pay off the first if you are the secound
You would still have to pay the first off., but you could make the payments instead of paying it off in full.