How to deal with second loan

Question

I am looking at a deal with an NTS on the first loan. Nothing on a second, which I am assuming is current.

Do I add both of these loans together as part of the amount owing, for which I will have to pay if making an offer on this property, even though the first isn't late?

Jon Holdman · Answer

The value of the first and second together is less than the value of the house, even after commissions.  Not sure how this is relevant in this situation:

Even if the first did foreclose, it would probably sell at auction for more than the amount owed.  That would go to the second and any other liens and then the excess would go to the former owner.  The second in a case like this is not going to be willing to negotiate.

Tom Mendez · Answer

Thanks.

I realized that this could have been learned by researching subordinate debts/liens/loans, and how my state's laws has effect on them. And, how to negotiate with lien holders to discount before auction, because I learned that at that point the first mortgage would get paid leaving nothing ($0.00) for anyone else.

Tom Mendez · Answer

Thanks.

Steve Babiak · Answer

Then they'll both have to get paid off at sale.

Tom Mendez · Answer

The first was $147, and the second $101. Value was $385.

Wayne Brooks · Answer

If the first is late, the second probably is too.  The 2nd didn't file foreclosure because they probably know they're completely under water.  What the value of the ome, and both balances?