How can I tell if the foreclosure is subject to 2nd mortgage?

[Douglas Gratz]

Just bought a house at auction, I ran a title search and cant tell heads or tails from it. The auction being online is different than in person. They usually tell you if subject to 2nd mortgage.  

I purchased a title report but I do not know if it tells me anything about if there is a 2nd mortgage that I will have to worry about, however I do see mutiple transactions on here one year after the other. One loan for 136k then the next year 188k.  I won the auction for 247k. Can someone please help.

[Wayne Brooks]

@Douglas Gratz “Subject to a 2nd mtg” is not a term any of us are familiar with....as in every jurisdiction I’ve heard of, a 2nd mtg get wiped if the First mtg holder is foreclosing.

On the other hand....if you buy a property at a foreclosure auction by the Second mtg, the First mtg remains, and you just bought the property Subject To the First mtg....I think this is what you mean.

Which loan was being foreclosed on...the one originated in 2001 Or the one originated in 2002?   The answer may or may not be obvious depending on if/many times the loans were sold.

To be honest, the $188k loan looks like a Refinance of the $135k loan in 2001, which was at purchase.  It is Highly unlikely the property bought for $138k would be worth enough a year or so later to qualify for a second mtg of $188k.  But, that would mean your title report missed the Release for the first mtg when the second mtg was taken out, assuming one was actually filed....I still think the 2002 loan was a refi, the 2001 loan got paid off, and I’ll bet it was the 2002 loan that foreclosed.  You Absolutely need to verify this and somehow document the 2001 loan is truly gone, for future refinancing and sale.