Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Foreclosures
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 16 years ago on . Most recent reply

User Stats

6
Posts
3
Votes
T Handy
3
Votes |
6
Posts

Why would bank foreclosure 2nd, but not 1st?

T Handy
Posted

I've bought at Sheriff's sales before, but only firsts. Several times in just the past few weeks, I've seen a major bank holding both the first and second mortgage foreclose on the small second but not the big first. Maybe the left hand doesn't know what right hand's doing, or maybe it's because payments are more current on the first? I know the Sheriff's Sale of the second won't wipe out the first so they're covered either way, but why would they do this? Could they have some strategy for this or is that giving the banks too much credit?

Though I doubt they're this clever, I wonder if the bank might be trying to find a buyer with funds to buy the smaller second, thus a good candidate to slide into the first? Or maybe they figure they can dupe someone who thinks it's a first into bidding and buying it at a low price, then they POW!, foreclose the first, pocket the cash, move on? I think if I did buy the second, I'd get paid off when the first foreclosed, but I'm not even sure of that.

I'd call the bank to find out, but they won't talk to me about a loan unless I have the owner's authorization to do so, which I don't have for these situations. Have you bought a second behind a first at the sale and if so, what happened with regard to the first?

Loading replies...