Paying off first mortgage after purchasing second mortgage foreclosure
When you purchase a property through a second mortgage foreclosure and then pay off the first mortgage, does any conveyance occur? Since you already own the property, is this equivalent to a lien being satisfied? Can the property somehow convey back to borrower on the first mortgage?
@Sean S. when you purchase a home at the courthouse steps (if its a 2nd) you are still responsible for the 1st home loan. You will need to contact them and notify them that you purchased the home and would like to know how much is needed to "reinstate" the loan. You are allowed to do this since you purchased the 2nd. The other choice is to get a demand statement for the full payoff of the note. You are the owner of the property, but the 1st can foreclose on you if you don't pay on their mortgage.