Hello All, I am kind of new to the bigger pockets forum. Pardon me if any of my questions doesnt make sense.
I am interested to buy a sheriff sale property in Hudson county NJ. And here are my findings
First recorded mortgage is with Bank A for X amount and has earliest recorded date
And second mortgage is with Bank B for y amount and recorded date is after Bank A recorded date.
First mortgage ONLY got re financed by Bank C and has a new latest recording date.
Now Bank C is foreclosing the property, since Bank C has the latest recording date, if I bid and win this property, am i responsible for second mortgage amount, as the second mortgage BANk B recording date is earlier to Bank C ?
Little confused with these recording dates. I am trying to find a foreclosure attorney to discuss in detail but meanwhile can some BP experts throw some light.
@Sandy Reddy I would think that you would
Be responsible for the loan b as well. So was loan A refinanced and defaulted?
@Sandy Reddy I know when it's a short sale your responsible for any other debt that comes with the property. Foreclosed is usually a clear title
@James Cassese , yes the refinanced bank is foreclosing the loan.
Look to see if the b loan signed a subornation, to allow the c loan to be in first position, even thought the c loan was after the b loan. This is not an uncommon method used, to allow folks to refinance a mortgage.
Do a preliminary title search. Most likely bank C bought bank a and b's mortgages. I just bought a house from sheriff sale (last week) which had a similar circumstances.
Hope that helps!