Posted by John Merchant on May 20, 2007 at 14:41:28:
Ah, this is why so many note buying pros, like Michael Morrongiello and David Butler, et al, refer to OCB 2ds as “throw-away 2ds”.
Because it may be the property isn’t really worth your expense and money outlay in forreclosing and then going to the 1st lender and bringing that note current…so you’ll decide to do nothing and let that 1st mtg holder do their own foreclosure.
BUT if YOU’re still on that note and you really sold the house subject to that mtg, you might be forced to take it over and pay the 1st mtg holder.
Suggest you make contact with that delinquent note payor and see what the problem is and if it truly looks like they can’t make their payments, see if they won’t give you the deed back.
Even if you have to pay them $1000 or so for moving expenses, this could be a LOT cheaper than any other options you might have.
I’ve known of people being foreclosed upon to use a chain-saw on the attic trusses and rafters, etc. so as to really destroy a house so it might pay you a lot to pay them a little to get out.