Hello BP nation
Anyone been in a deal with a upside down house with two mortgages the first wanted to foreclosure but the second didn’t want to and tax lien on the property? If anyone has done anything like this Please let me and all others that could read it and learn like me thanks for your time and support
Upside-down deals typically end up in foreclosure or short-sale... or the owner simply keeps paying the mortgages.
They are bad candidates for investors because there is no equity to work with.
Until a foreclosure occurs and junior liens are wiped out, there is really nothing to work for. And since one of the liens in your scenario is a tax lien, that could make an already difficult situation even less likely to produce a deal.
Generally @Tom Gimer is right, however there is a possibility of a Short sale. If you are not familiar with this, you buy the house from the owner and the bank agrees to accept less than is due as full payment. Short sales are generally very tough and a LOT of work to pull off. They can also take a lot of time to complete. They are so much trouble, I would usually not consider it, which goes back to Tom's point.
However in this situation, the second lender may take pennies on the dollar. He/or she, will by wiped out by either the 1st foreclosing or a tax foreclosure. I have also had success by playing the tax lien holder and the bank against each other. Doing that can take a lot of knowledge about how tax sales work in your state.
Thanks so much for take time to add knowledge to us
So I was thinking on maybe take it on subject to and just pay the tax liens after I fixed it up and try to get a mortgage or something else
How sounds that?
It will still be upside down.
Sounds like a standard short sale transaction.
you are right guys I really appreciate your help
thanks so much
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