Posted by Ben (FL) on February 05, 2001 at 08:24:30:
The second can foreclose, but to do so they have to payoff the first. Unless the balance of the 2nd is a significant % of the value of the properyt, or there’s LOTS of equity, they probably will not do that.
Whenever someone who is in foreclosure calls me, they often have a 2nd, sometimes a third, mortgage that together with the first adds up to more than the property is worth.
The only way to go is to call the junior lien holders, tell them (in case they haven’t yet been notified) that the first is foreclosing. If the foreclosure goes through, their interest is wiped out, so offer them $2,000 to settle the loan.
If they do, then you can either payoff the first with new financing, being sure to include enough of a loan o payoff the settlements on the junior liens, or pay the settlements and take over the first, subject to.
Or, if the sellers are amenable and the juniuor lien holder tells you where to stck your offer, you cold offe rthem $2,000 to remove the lien from the property, but keep the sellers responsible for it. It won’t help the sellers much, but it may help you.