How Much Will The 2nd Pay?
Let's pretend in this example that the 1st Mortgagee is taking the property in question to auction.
Of course if the 1st takes back the property, the 2nd will get either
1.) nothing, or 2.) whatever overage there is after the 1st is paid off
(no one on the forum can seem to agree on which of these cases is true, so I still don't know for sure)
Let's also pretend that the 2nd has decided that it wishes to pursue full protection of its interest in the property. If the 2nd decides to do this, what will it cost him?
Obviously it will cost the amount to pay off arrears to the 1st & holding costs, but what about the actual cost of pursuing foreclosure action?
How much will they spend?
That depends upon the value of the mortgaged premises... and their window of exposure to loss.
Don't foget that even if a mortgage is extinguished at foreclosure sale.... the personal promise to repay may survive...
of course that depends upon the laws and customs of your state.
Don't need to know how much they will be willing to spend - impossible to know that unless you work for the company.
Just wondering what the minimum cost would be to pursue such an avenue - ranging from $10,000 to $50,000 or ranging from $15,000 to $30,000, etc.
(I'm doing a cost benefit analysis)