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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Yes, sometimes it does.... Posted by Ward-CA- on May 16, 2002 at 6:28 AM In Reply to: Does it ever make sense to buy a Second Mortgage being foreclosed? posted by jock on May 15, 2002 at 11:16 AM : I am curious about whether or not investors ever choose to buy a second mortgage if the overall market value of the property would justify it? : If you do purchase the second, does that mean you would own the deed to the property free and clear once all other senior liens (including the first mortgage of course) are paid off? Pitfalls? : Thanks! : I am curious about whether or not investors ever choose to buy a second mortgage if the overall market value of the property would justify it? : If you do purchase the second, does that mean you would own the deed to the property free and clear once all other senior liens (including the first mortgage of course) are paid off? Pitfalls? : Thanks! ==================== When you buy a secured lien on a property all you own is the debt, not the house. To get the deed you'd have to buy it from the homeowner or bid at the foreclosure auction—and if you're the highest bidder, you'd get title via a Trustee's deed issued by the trustee. Some pro's in the foreclosure game will buy a 2nd (at a high discount) that's junior to a foreclosing 1st when market conditions (seller's market) and relative equities are right. What they're looking for is to be paid off by the expected refinancing or resale of the property, engineered by the owner to avoid losing her equity at the upcoming foreclosure auction. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am curious about whether or not investors ever choose to buy a second mortgage if the overall market value of the property would justify it? : : If you do purchase the second, does that mean you would own the deed to the property free and clear once all other senior liens (including the first mortgage of course) are paid off? Pitfalls? : : Thanks! : : I am curious about whether or not investors ever choose to buy a second mortgage if the overall market value of the property would justify it? : : If you do purchase the second, does that mean you would own the deed to the property free and clear once all other senior liens (including the first mortgage of course) are paid off? Pitfalls? : : Thanks! : ==================== : When you buy a secured lien on a property all you own is the debt, not the house. To get the deed you'd have to buy it from the homeowner or bid at the foreclosure auction—and if you're the highest bidder, you'd get title via a Trustee's deed issued by the trustee. : Some pro's in the foreclosure game will buy a 2nd (at a high discount) that's junior to a foreclosing 1st when market conditions (seller's market) and relative equities are right. What they're looking for is to be paid off by the expected refinancing or resale of the property, engineered by the owner to avoid losing her equity at the upcoming foreclosure auction. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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