Mortgage Question?
Can a home go to foreclosure if there is a 1st mortgage still on it? I saw a home in my local paper going to foreclosure with the principle amount for $15,300 w/ 10% deposit to bid. Now can the second lien holder take the homeowner to foreclosure if their is a larger 1st?
You would be owner of the property, subject to any right of redemption, and subject to the first mortgage.
The first mortgagee would likely foreclose.. so be prepared to pay it off.
Yes... Very Well Put!
Thanks alot ShortSalePro! I think that property would have been a big mistake and a lot of head aches.
HB
Even in the best of circumstances there probably is no equity in the property. Not enough time to build enough equity to make it a real deal.
Is it in a high appreciating area? Is there any equity in it? Could be a possible short sale. Let the homeowner know the potential risks of having a foreclosure on their record for years to come and how you are different and what you can do to help them. Doing nothing is never a good option.
Get them to deed you the property and sign an information release form. Just don’t record the deed it until you decide if it’s a deal. It probably isn’t, but you never know. If it is a deal, record the deed, if not, rip it up.