Buying first mortgage and foreclosing others
There is a property I am interested in. Because of my connections through my job at the bank, I have a representative at the other bank that has the first mortgage on the house that is prepared to sell me the note so I can become the bank. I also have an agreement with the estate....the original owner passed away.....and I have an agreed upon price in which the estate will sell me their interest in the property.
So....through the estate, there is an unsecured creditor that appears to have filed a lien on the property, there are two small HOA liens and 1 city of Tulsa lien. That is all that I can see so far without pulling the full abstract which I am willing to do based on input from others based on the following question.
I want this property for buy and hold but obviously need to be able to sell it at some point in the future...or refinance it. Assuming I am successful in buying the note (already agreed to by the bank) and becoming the first lender and I buy the rights to the property from the estate (already agreed to with attorney representing the sole heir), What else do I have to do?
Right now the house is in foreclosure....has been for quite a while. Can I simply buy the note and as the bank, pay the estate the agreed upon amount for a deed in lieu of foreclosure? (cash for keys) At that point, can I just cancel the foreclosure? What has to be done to resolve the other items? I don't mind paying the HOA liens and city of Tulsa liens....less than $2000 total for all them. It is the other creditor claim for $18,000 or so I need to know my options on. Quiet title suit? Just accept this as an ill liquid property I control for a while?
Do a quiet title suit to clear it all up? Is that an option since I technically am aware of another claim due to a judgement from a previously unsecured creditor? Do I just need to negotiate with all others to resolve the liens?
Not sure what options are and how to do it properly while retaining as much value as possible. Looking for input for those that deal with this type of property and can speak from experience.
Thanks