2cnd mortgage Auction issues

[Lindel Turner]

I’ll try to be brief I attended and won a auction for a SFRbefore I wired the funds I ask the lawyer in charge will this satisfy the first seat mortgage Wells Fargo. He answered no. I politely passed. Unsure of what I was getting into. Here were the numbers. Starting price 12,500 Winning bidder price 72,500 Remainder of first seat mortgage 38,000 Home value 90k What would if happens if I wired the money and why wouldn’t they have paid off the first mortgage? Was I just buying a someone’s bad note?

[Andy Mirza]

Originally posted by @Lindel Turner:

@Wayne Brooks That was my assumption but when I asked the senior manager st the law firm they informed me this would have no impact on the first mortgage. There were surplus funds of about 60 grand and only abou 28k left k. The first mortgage

 Junior liens get wiped out in FC. senior liens stay. Excess proceeds are used to pay jr liens in order of priority. Once those are paid in full, any excess goes to the former property owner NOT toward senior liens. Those stay in place and bidders formulate their bids with that in mind. The ones that don’t, lose their money unless they get lucky like you :)