All Forum Posts by: James W.

@Varinder Kumar

good... how do you tell you're purchasing the first?

thats a nice one... except i  am sure there's hardly any legal way to pull up someone's credit report with just their name

you purchase plenty 2nd place notes, how do you determine they are 2nd place?

Hi @Dave Van Horn

Is there a way to know how many loans are open on a foreclosure? 

In particular, what position is the foreclosing loan at, or if there are any senior loans?

Is there an easier way than a full fledged and paid title search? 

@Odie Ayaga

of course - if there's enough equity to cover the sum of all debts, there's profit.

the biggest challenge i find when i look at a foreclosing property is to "know" how many loans does it have, and so there may be an unseen debt from senior positions.

of course i could run a title search but its not fun to spend a hundered bucks on every property only to find out 90% of them are underwater.

@Christopher Phillips

Yeah... it seems it all boils down to knowing the "total debt" - no matter which position forecloses.

Except if the first one forecloses it releases the property from junior liens. They can go after the original owner but not foreclose anymore.

Unless the senior lien took care of the junior liens also when setting the bid price.

 Got it. That's the term I guess i was looking for - the right to pay off as a "successor in interest".

Thanks.

Btw, the 1st forecloses the original owner or the new owner of the title, me in this example?

Ok. Understood about my funds going away in that case.

Will they foreclose the original owner or me? Its the original owner who signed the promissory note.

@Christopher Phillips

I am talking about a home that is auctioning right now because the lender in 2nd place is foreclosing.

And I buy it subject to the 1st mortgage. 

Now my concern is that the 1st mortgage may also foreclose and sell the property - and I would lose the property and the money i paid for it too.

So can i offer to pay their balance and stop the foreclosure? While this may seem like a no-brainer, they may hope to get a higher bid closer to market value, and so reject my offer and proceed to foreclose.

Alternatively, I can let them foreclose and I will lose the property, but somehow have them pay me whatever i paid for it?

Hi

If I buy a foreclosure from the second position for say $200,000, subject to first mortgage of lets say $300,000, and then the first position forecloses - my understanding is it forecloses the original owner, and not me.

At this point,  can I pay the lender their $300,000 to prevent foreclosure? Can they deny my payment and still foreclose?

And when they do foreclose because lets say I could not pay - what happens to my $200,000 before they take the title from me? Do they have to include my cost and foreclose for $500,000, and pay me before taking away the title?

Thanks @Judy Parker and @Fasil Khan

another impediment with occupied REO's is they wont finance.

ive been able to get vacant REO's with financing 25% below market.

with only 25% down - one could buy 4 deals by financing with the same money as cash. theoretically speaking.

so unless cash deal occupied REO's come with a 50% discount from market, that, there is a deal breaker for me.