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Updated over 14 years ago on . Most recent reply

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M. Turner
  • Real Estate Consultant
  • Fort Mill, SC
0
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5
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Bank foreclosed on second position before first

M. Turner
  • Real Estate Consultant
  • Fort Mill, SC
Posted

I recently bid (and won) a foreclosure auction in which the bank owns both the first and second positions on a property. For some reason, they decided to foreclose on the second position first - giving me the opportunity to obtain the property. Obviously, the first lien is still in position and would need to be satisfied when the property is sold. My question is this: When I close on this foreclosure next week (obtain the property from the court), the court will award me with the title to the property. How is this going to affect the ownership of the first lien? IF the bank decided to foreclose on their first position due to the original owner not paying on it - how does this affect me? Will I basically just own a second position to the property and get written off? Curious to the thoughts of anyone else that might have been in this situation...

Thanks in advance.

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