Another Foreclosure
I am about to bid on a foreclosure property, the bid is on the second Line of credit Mtg, and I know I am still obligated to the first with is Washington Mutual so I called them to see how much will it be to satisfy it, I know its about 122,000 because they are scheduled to auction it on the first week of January, but they were no help and they told to go to buygreathomes . Com to get the pay off, it’s a site that have nothing to do with WaMU, I just don’t want to miss out on this one, it still makes sense to me to pay the current bid on the second plus the 122,000 on the first Am I missing something here in regard to the rules of how this work?
Since this is your first foreclosure purchase, it would be a good idea to have the title searched by a professional. I get them done for $50.00 or so.
If the 2nd was written immediately after the 1st, there should be no problems with title if the foreclosure was done properly. The situation changes if the 2nd was taken much later than the 1st. The time lag between the two mortgages allows various other liens and judgments to take hold, and the 2nd cannot foreclose them out.
But if your title search tells you that the foreclosure of the 2nd leaves only the 1st to be satisfied, as the high bidder you only need to deal with the 1st mortgage. At that point, you can pay it off if you wish, and have clear title. Or you can try to short it, or bring it current and pay it monthly. Lots of options.
[addsig]
thanks Bragain76 &cjmazur.
Its not my 1st forsclosure but the first that I am dealing with that the 2nd being foreclosed on, to answer yur questions the 2nd was recorded only 2 month after the 1st. the only other lien is the condo association for about 4,000 which I am not sure if I am responsible for since it was filed only 6 month ago or so.
my other queston is I know the first is for about 122,000 but I could not get the exact amount any way to find out in Dealing with Washington Mutual was no help.
thanks in adavance
What is worrying me is nobody is bidding on this property except one person and after paying both Mtgs it would have about 50k equity profit at least The bidder probably is not informed or lucky. Today is the deadline to upset his bid. May concern to dealing with the 1st and make it current, is the first did not have the hearing yet, and even though they are scheduled to foreclose sale and the end of December, the 1st still have a contract with the owner of the property and the judge did not approve the sale even though its scheduled for end of December, so I don’t wart to win the bid on the second which is an equity line by a different lender Wachovia and the first is by Washington Mutual, so all I will be holding is a note and just be replacing Wachovia as a 2nd holder, since the owner could make his 1st current anytime before end of December and then Washington Mutual is happy with that and all the 2nd can do is try to collect their debt through collection agency , they are not subordinate to the 1st mtg.