Buying A 2nd...What Happens With The 1st Mortgage?

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Hey everyone,



I buy homes at the foreclosure auction. I always focused only on 1st mortgages but there is a home this week with a 2nd going to auction.



The 2nd has an estimated starting price around $97K. There is a 1st for only $13,800 but not scheduled for forclosure as of this week.



If I buy the 2nd can I pay off the first and own the home?



What are the drawbacks?



The home has a FMV of approximately $200K



Want to keep as a rental. What do you guys think



Thanks ahead of time for your comments.



Mike (SlushMan)

Comments(6)

  • cjmazur17th November, 2007

    you buy there mortgage subject-to sr, mortgages.

  • linlin17th November, 2007

    Check the summary judgement documents at the courthouse. They tell whether the sheriff will automatically evict or whether you will have to request eviction.

  • HP100322nd November, 2007

    Thanks for the input.

  • NewKidInTown322nd November, 2007

    Quote:
    On 2007-11-22 15:18, ypochris wrote:

    Chris- former Realtor

    Chris,

    Have you abandoned your license? Will you tell us why?

  • ypochris21st November, 2007

    Ah, yes, but standing is very important in legal issues. If the bank does not have standing, they do not have a leg to stand on (so to speak) in a foreclosure action.

    Will the investor who owns a tiny fraction of your note be willing and able to foreclose on you?

    Chris

  • cjmazur22nd November, 2007

    legal manuvering or poorly drafted bond documents that the Bonds were securitized with.

    This affects a multi-trillion dollar inducstry. It would be interest to get a legal Opinion.

    If this is true, you could make a killing shorting CMBS, CDO, CMO, ABS, etc.[ Edited by cjmazur on Date 11/22/2007 ]

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