Hi Folks! I'm going to a Sheriff's Auction and want to know if a property I'm going to bid on has a second mortgage against it am I responsible for this mortgage if I win? I know I'd be responsible for back taxes but a 2nd mortgage?
all mortgages after the one you are bidding on should get wiped out. However, you should confirm that you are bidding on the first. County recorder info, or use a title company
Has the second been brought into the foreclosure? if so you are good. in most cases, even if its not brought in it would be cleared. there are a few tricky ones though, so make sure a title company tells you whats up, and buy title insurance. I have purchased many that way, and have done quite well, but its not for everyone.
yes, you would forfeit the 10%, but expect competition, and you will need 10% in cash or cashiers check/checks on your person when the sale begins, no running to the bank, or personal or business checks. I have been the successful buyer when others were not prepared.
@Scott Schultz we are prepared. We don't think we'll win but we're excited to learn the process. If we do we'll get a great deal.
We Won!! We got a great deal buying the property at 40% it's assessed value. It comes with a tenant who's been there eight years and pays good rents on time every month. The property will need some repairs but will have great cash flow once the dust settles.