Need your help, Is it a 1st or 2nd? - Posted by steve
Posted by steve on March 15, 2006 at 13:58:18:
Hi, I have a question about a pre-forclosure property I’m interested in. I was faxed a property profile of the subject property from a local title company that I work with. The profile shows that the owner, who was deeded the property as a gift from his parents in 2000, obtained a “renovation loan” for $300K in 2002. The same bank filed an NOD last month and is proceeding with foreclosure.
The comps are showing $900k-$1 mil for this property. I’m having a hard time believing that this guy is going to let this house go when he has about $600k-$700k of equity sitting in it. Which makes me wonder if the foreclosing bank is in second position. How do I find that out? If it is in second, where do I go from there?
I’m approaching this cautiously, because a friend of mine bought a house at an auction and thought that he had scored a great deal, only to find out that he was in second position. If any of you Seasoned Investors would give me some advice I’d really appreciate it. Thanks in advance.