BiggerPockets

You don't give enough information. Describe the situation. Are these performing or non-performing, which is first and second (I would guess the 70% is first, but you never know). What is your objective and why are you interested in buying these?

If these are mortgages, buying either or both only gives you the payments made on the mortgages. You don't own the property. If they stop making payments, then you have to foreclose.

Be sure you really understand all the possible scenarios, and have a good plan with exit strategies, and be prepared for the worst.

Whoops. I missed the foreclosure part. Never mind.

This varies state by state. I assume you mean you would buy the second (the 30%) loan for pennies on the dollar. If you do start getting payments, you can make a nice return on the note you've just bought. The note is all you own.

If you're not getting payments on the note, you still have a couple of ways to make money. One is to approach the owner (you're borrower) and offer to accept a deed in lieu rather than foreclose. That would give you owner ship of the house, subject to the first.

If there is a short sale in progress, then the negotiator will now have to deal with you. So, maybe you can settle your note for a higher price than you paid.

If the first does foreclose, you have a risk of losing what you paid. In some states, you're left out in the cold. Here in CO, you have redemption rights. After the property sells at the sheriff's auction, you have the right to pay off whoever won the auction and take possession of the house. Anyone junior to you has the same right, but you get to add on what you're owed, which should be a much larger amount than you paid. Under the right circumstances (house worth more than the first, but less than both loans, you have cash to redeem), that can be a way to acquire the property cheaply.

So, anyone have some knowledge about this? if I buy the 30% portion of this. will I have a lien on the property that would force the remaining 70% to come to me if someone else bought it. or force the bank into negotiations with me? I'm struggeling here because I wnat to do it now. I don't have that much to loose....I don't think....but I'v enot heard of this before. thanks for any input.
Kyle