Buying The Second At The Courthouse In GA
My understanding, as I have done this once before but not at the courthouse, is that I can purchase the second at the courthouse foreclosure sale and I own the house, subject to the first mortgage. I suppose I can continue to make payments on the first, ask them to allow me to assume or simply pay off the first.
The reason I am posting this is because of all the comment i have read on the net about proceeds from the sale going to pay off the first lien or having to pre negotiate with the first.
My previous experience with this was on a house where the first was about to foreclose and the Second had already foreclosed. I bought the house from the second via quit claim and some cash then brought the first current and continued to pay on it until it was sold 4 months later.
Another question, if i buy at the courthouse, will the first be interested in negotiating a payoff less than the balance on their loan? I would guess not since there is over 100k of equity....just a thought.
Again, this is in GEORGIA, thanks!!
In a proper foreclosure, all interested parties are notified. No way the owner would be surprised that a second lien holder foreclosed.
Be careful...
We have been surprised BOTH WAYS on the pay-off balance after buying a 2nd at foreclosure.
One, expecting a $ 110K pay-off, resulted in a $ 87K pay-off because the 2nd foreclosing plaintiff was paying the 1st payments to protect their own position, resulting in a lower pay-off to me.
The other, we bought a 2nd, subject to a $ 50K pay-off 1st, we tried to arrange a short sale for $ 35K.
The first delayed us until we had to pay them off at closing.... $ 63K payoff to clear the property.
Just understand the risks involved in buying 2nds at foreclosure sales. And NEVER buy 2nds without a 3rd party title search!
[addsig]
loan was brought current today, no sale!