2 Foreclosures On Same Property
A lien holder is foreclosing a week ahead of the first mortgage. what exactly would you get by bidding at the first sale? Could you stop the second foreclosure by being the new owner & calling the bank offering to pay off the mortgage?[ Edited by wrc555 on Date 04/28/2005 ]
This depends on the nature of the lien and when it was recorded. Most likely it was recorded after the first mortgage since a lender would require that existing liens be paid off before lending.
If the lien is senior to the mortgage, (possibly a real estate tax lien) then the mortgage holder will do something to protect its position if there is danger that the mortgage would wiped out at the first sale. They might pay off the lien and add this cost to their own sale.
If the lien is junior to the mortgage and you purchased the property at the first sale, then you have made purchase subject to the existing mortgage that is about to foreclose on you in the next week. There may be some timing issues and this may depend on what state the property is in. You may be able to bring the mortgage current or pay it off before the sale. You certainly need to check on this before attempting to buy at the first sale.