Need Some Opinions...
k here is the situation. There is a house me and my wife are wanting to buy. The bid price at the auction which is on April 9th is at 113,000.00. It is a nice house and it could be well appraised for 550,000.00. But I just found out that the 113,000.00 is just the junior lien on the property and there is still a 1st lien at 313,000.00. i f i wait after the auction and if no one purchases the property there could be a possibility that the lender will ask for more then it is already owed. i never dealt with an auction property where the second lien lender is processing the foreclosure. So to all you guru investors what are your opinions? What would you do? Is there a better way of handling this...? This is a property to live in. Thank you.
the bank can sell the mortgage at any time.
They might not be motivated, or just not do it, but worth a try.
I have 2 deals pending like this.
cjmazur can you elaborate a little more. What exactly did you do? The auction date is set for April 9th. Am I to late..
yeah, One thing that gets me is how by buying the second lien are we able to retain the house when the first lien is in the owners name. One more thing. How do you get the previous owners to leave the house after the property has been sold.[ Edited by tadaque on Date 03/23/2008 ]
Would anyone know how to obtain loan the loan information like the interest rate and the type of loan program. I am having a rough time gathering the info on this guy.
I am a bit confused. I assume that the auction is for the house and that the foreclosing entity is the holder of the second lien. In that case, the second is extinguished--you are not buying the second lien.
If you succeed at the auction you will own the house subject to the first lien. This was pointed out by bargain76. You will have title to the house. Most of the time, you can continue to make payment on the first without the first note holder exercising the Due On Sale clause. They would likely welcome a reliable payor at this time.
Yes Edmeyer the second lien is processing the foreclosure and it will be extinguished once it is paid at the auction and subject to the first lien. I need to find a way to gather the info on the first lien just so I know what I am getting into.