Posted by Nate(DC) on August 23, 2003 at 20:31:13:
I think the implication is that it was the larger loan (which one would assume was the first, but actually was the second here) that was foreclosing…
NT
How I made $20,000 on Tuesday - Posted by rm
Posted by rm on August 23, 2003 at 09:40:13:
If a penny saved is truly a penny earned, then I just made $20,000.
Got a call from a homeowner on Tuesday.
She had filed Ch 13, converted to a 7, and her home was in foreclosure.
Another person had been “helping her” with the house, to stop the foreclosure and help her keep it. He called her on Monday to tell her that he couldn’t come up with the cash to help her.
I met with her on Wednesday night, signed a boatload of paperwork, and expected to buy the sherriff’s deed on Thursday morning. The only way for the deal to make sense was for me to buy the sherriff’s deed and wipe out the second.
Due to the timing, I was unable to have a title search done by a title company. So, 20 minutes before the sale, I went up to the “vault” in the register of deed’s office to check it myself.
Wow, am I glad I did. Turns out she did an 80/20 or 80/10 loan. I fully expected to see the “first” (in terms of size) to be recorded first, before the “second.”
Turns out the smaller mortgage was recorded two weeks prior to the big one.
NO DEAL!
Had I bought without checking, I’d have had an albatross hanging around my neck.
I posted this as just another illustration for the newbies that you skip your due diligence at your own peril.
Re: How I made $20,000 on Tuesday - Posted by Danny Teodorescu
Posted by Danny Teodorescu on August 23, 2003 at 20:20:02:
What do you do when you go to the “vault”…are you basically doing your own title search? What is the general process…should be an easy question to answer huh? 
Re: How I made $20,000 on Tuesday - Posted by Vic
Posted by Vic on August 23, 2003 at 19:11:32:
Maybe I’m missing something here, but what was the purpose in signing any paperwork with her if you were going to buy at the sheriff sale? What agreement did you need with her?
If you went to the sheriff sale & were the successful bidder, then why would you care which mortgage was recorded first. The second just would have been screwed if they didn’t protect their interest.
Vic
It may not have been valid anyway… - Posted by Ben (NJ)
Posted by Ben (NJ) on August 23, 2003 at 11:59:21:
since she was in bankruptcy. In my experience the trustee has to approve the sale of a property during BK and other creditors are invited to submit higher and better offers.