2nd's rights during redemption - Posted by rm

Posted by Jon morgan on October 13, 2003 at 21:05:08:

They are not going to throw more good money at bad money.

2nd’s rights during redemption - Posted by rm

Posted by rm on October 13, 2003 at 16:59:24:

I’m working on a short with Fairbanks.

The home already went to auction and the lender was the high bidder. Unfortunately, the seller called me just two days before the auction. Turned out to be fine, as I need a discount on this property, due to its condition.

Fairbanks said they’d look at a short during the six-month redemption.


I spoke with the second and he said, “We intend to buy the first.”

He was unaware that the property had already been to auction last Thursday.

He then said, “Well, then we’ll buy it… the second has the right to buy the note during the six-month redemption.”

What “right” do they have?

Seems to me that they don’t have any more “right” to buy the second than anyone else.

Also, it strikes me as bizarre that a junior with a lien of $7,500 would pay an additional $33,000 to buy out the first.

I realize that banks are void of logic, but does this sound plausible? Strikes me as a load of bull. I’d like to hear if you’ve have any similar experiences.

Your making me look bad - Posted by Jack

Posted by Jack on October 14, 2003 at 11:52:31:

Please learn the law where you live before you call any more lenders. In the eyes of the lender you make all investors (even those that know what they are doing) look foolish.

Re: 2nd’s rights during redemption - Posted by Lyal

Posted by Lyal on October 13, 2003 at 19:11:32:

Foreclosure statutes vary but in my area, anyone can buy the sheriff’s certificate if the lender (assuming they bid at the auction) is inclined to sell it. Most times they are not (no logic here either). The second does have the right to “redeem” in a 1 week period following the owner’s redemption period (successive 1 week periods for each lien-holder according to their position) but you need to pay full price which includes satisfying the first, the legal fees and any interest and expenses that have been added since the sale.
Generally not a wise move unless their is a bunch of equity.
All the best, Lyal

Re: Your making me look bad - Posted by Willie

Posted by Willie on October 16, 2003 at 05:52:02:

Jack. Geeze, I suspected you must be jerky by you bandit sign posts, but now I am sure.

Dear Mr. Know-it-all - Posted by rm

Posted by rm on October 14, 2003 at 17:02:33:

What a foolish thing of you to say.

I’m so glad that you’ve known everything there is to know about the industry from day one. And I’m sure that just by merely knowing the law, by extension, you also knew everything else there was to know about this industry.

Considering the fact that most of the supposed “real estate” attorneys don’t even know all the intricacies of this niche, it’s comforting to know that there’s at least one omniscient being who actively invests in real estate.

Thanks for answering my questions.

I will treasure your warmth and wisdom always.

Oh, look! There’s a bandit sign! Go boy, go!

Re: Your making me look bad - Posted by Tom (MI)

Posted by Tom (MI) on October 14, 2003 at 13:35:16:

I agree that people should learn more before they just “jump in” but I can’t imagine that anyone could make you look worst than yourself.

Have a great day,