$42K second foreclosing on $265K house. - Posted by MattFL

Posted by Bill H on October 02, 2003 at 22:57:36:


  1. You can contact the 1st and see if they want to sell. No law against it that I am aware of.

  2. However, I doubt they would sell. If the 2nd forecloses that just means that the 2nd must bring the 1st current and keep it current, etc.

  3. SO, if you are successful in purchasing the 1st what would be your grounds for foreclosure. The note is current, the payments are being received on time, the 2nd probably (do not know where you are) has the right to take it over without you being able to call it under ‘Due on sale’ as they were only acting to protect their position and interest. And: unless you got more money than Century Bank and Better Lawyers it is most probably a losing cause to even try to call it.

THEREFORE; you are now the owner of a 1st TD that you are receiving payments on…no more…no less as I see it.

Good Luck,

Bill H

$42K second foreclosing on $265K house. - Posted by MattFL

Posted by MattFL on October 02, 2003 at 21:35:05:

Second mortgage holder, Citi Mortgage, is foreclosing. The total costs of everything is just under 42k. Auction is Oct. 22nd. The first mortgage(held by Century Bank) is a little under 146K. ARV is about 265K. House is three years old. Doesn’t need any work. As I understand it, the first is letting the second foreclose because they know that the first will have to pay them off if the second takes it back. The second doesn’t mind because the amount of the equity in the house. I know at this point the second will probably not entertain a short sale. How can I go about buying the first mortgage? Do I need to get with the seller and get permission to talk with the lender? If I were to buy the first mortgage, would I then be able to start foreclosure proceedings and try to wipe out the second, even though the second has already started the foreclosure action? I’ve done quite a few short sales, and am in the process of eight right now, but I’ve never run into this. Anybody have any experience with this?