Help Short Sale Question
I have the opportunity to buy a secound mortgage at a Discount ( not a short sale but the paper )
The secound is currently forclosing with a sale date in the next 15 days the first mortgage is 2 months behind (july and august)
If i buy the secound mortgage and decide to continue with the auction do I have to pay off the first mortgage or can i just bring it current and sell the property
Any help would greatly be appreciated I need to make a decision buy 8/7/03 Friday at noon Tommorrow
Thx For the response in advance
My thinking is that it would depend upon the laws and customs of your state... in theory, yes. However, there may be a statutory right of redemption which would enable the former homeowner redeem. In that case, you could be paid the amount due on that mortgage plus interest and fees... earning your profit on the difference between your discounted acquisition price, and the redemption price. Not a bad strategy.
You could bring the first mortgage current (if the laws in your state permit a reinstatement) and sell the property... or if you have cash, negotiate for the purchase of the first mortgage via an assignment.
It would be a good idea to know what the homeowners plan to do, and seek the advice of an attorney who has represented Plaintiff in a mortgage foreclosure lawsuit.