Updated over 9 years ago on . Most recent reply
Lien Repayment
Hello all,
I need your guidance please! I have found a property at auction that is a massive deal. I did my due diligence and discovered it does have a lien against the property for a balloon mortgage of ~44k. Even with the balloon mortgage, the home is still a great deal. If I buy this house at auction, do I immediately have to pay off the balloon mortgage or is that only due if I try to sell the house in the future? Thanks for all of your guidance!
Most Popular Reply
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
- 13,510
- Votes |
- 23,418
- Posts
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
@Jennifer Ceren tapp If so, that second Mtg no longer exist, due to the foreclosure by the first. You will never see a "satisfaction recorded", it's just an "operation of laws". Since this is an REO auction, they'll be giving you clear title against any recorded liens. But also important, you think it's a screaming deal because you are looking at their low ball teaser "opening bid", which the property will never sell for. There will be other bidders, and the bank has a hidden reserve amount which is much higher than that.