Nothern California foreclosure property.
Hi people, I finally found a foreclosure with enough equity in it. I have a few questions for the veteran investors. The house is foreclosing on its second deed of trust which is in the amont of $13,316.53. However, there is also a first deed of trust in the amount of $76,250. The trustees sale is scheduled for 12/26/02. My question is that let's say I pick up the house for 13,316. Will the lender for the first deed ask for the entire amount that is owed or can I negotiate with them? Also, can I just take over the payments or will they demand the 76,250 a few days after the trustee's sale? Any comments will be appreciated since I do not have too much time. Thanx in Advance.
It may be difficult to answer without additional facts, but let's try.
First you are only buying a note secured by a 2nd. To get the real estate you will have to pay 89,566.53 plus.
The lender on the first deed may call in the note, they may negotiate, but I would contact them first before purchasing, and as for taking over payments they may or may not allow this.
1. Your first step would be to contact the 1st mortgage holder to see where you stand if you purchase.
2. You also need to check for any back taxes, tax liens, etc, as you will inherit any of these types of encumbrances if you want the real estate.
3. Is the subject property still occupied, if so this will be another inherited problem you will have to deal with?
4. Have you inspected the subject property in/out?
5. Do you know what the market value is?
You may have a great investment, but some due diligence will help avoid unforeseen problems.
[addsig]
Quote:Will the lender for the first deed ask for the entire amount that is owed or can I negotiate with them? Also, can I just take over the payments or will they demand the 76,250 a few days after the trustee's sale?
The holder of the first cannot accelerate against the holder of the second when they acquire title via foreclosure, as long as the first is current. So yes, if you buy the second and foreclose on it you can acquire the property subject-to the existing first.
Thanks for the replies! The property is vacant and it is half plex. I went to the neighbor and he told me that he had been living there for 6 months and all along the property had been vacant. He also told me that he purchased his side of the half plex for $270,000. I went to the recorders office and the above two liens were the only ones under the owner's name. Is there another place I should look for tax liens?
Sounds like you have taken care of some basic stuff, I would check with the Asser for any back taxes due.
Let us know if your deal goes through.
[addsig]