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Two Lenders Forelcosing?

thomp361 profile photo
  • Friday, August 20, 2004 @ 05:02 PM EDT
  • 6 Comments

Hi,

I am researching a property that is being foreclosed on by two lenders at two different dates. (One auction is a week before the other auction). From what I can tell, the first mortgage will be auctioned off the week after the second. How does this work? I would think I want to bid the first mortgage right? What happens to the second mortgage then?

Thanks for your help!

Comments(6)

  • no photo
    compwhiz18th August, 2004

    Unless there's a ton of equity there, it makes no sense for you unless second shorts their bid dramatically at the auction. Even so, you will then need to payoff first within a week before their auction to stop their foreclosure.

  • no photo
    thomp36118th August, 2004

    Thanks for the reply!

    If I just bid on the original mortage the week after, wouldn't the junior mortgage get cleared though???

    Thanks!

  • TheShortSalePro
    TheShortSalePro18th August, 2004

    If the first mortgagee forecloses.. the second mortgagee would likely bid at the sale to protect it's interest.

    [addsig]

  • no photo
    darrylsandoval18th August, 2004

    There must be some equity there in order to have the 2nd lien foreclose. In tah tcase the 1st lien needs to get paid off & overage goes to 2nd.



    DS

  • no photo
    thomp36119th August, 2004

    I guess I don't understand why the second mortgagee would be foreclosing the week before the original? What would be there reasoning for doing so?

    Thanks for all of your help!

  • no photo
    thomp36120th August, 2004

    Doesn't anybody have an answer to this?

    Thanks for you help!

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