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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Hypothetical answer... Posted by Ward-CA- on January 29, 2004 at 6:45 AM In Reply to: Ward-Hypothetical Question on a 2nd, Help! posted by Shelly on January 28, 2004 at 5:56 PM : Hi Ward, : I have a hypothetical question for you. Suppose there is a house with a fair market value of $200,000. It has a 1st of $120,000 and a 2nd of $2,000. They are current on the first, but the 2nd is going to default on them. Would you then go and buy the 2nd? Do you get title to the property subject to the first? If so, do you then kick the people out and then contact the first to pay them off? Would appreciate any info! ================= Shelly, It's difficult to believe that someone would be delinquent on a small $2,000 lien and not on a much larger senior lien for $200,000. But yes, I'd go to the foreclosure auction of the 2nd and bid on it. If I was the highest bidder I'd get title to the property, subject to the balance of the non-delinquent 1st. Then I would acquire possession of the property and keep up the payments on the 1st until I resold the property. At that time, at the close of my re-sale escrow, the 1st would be paid off from the purchase funds deposited into escrow by my buyer. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : I have a hypothetical question for you. Suppose there is a house with a fair market value of $200,000. It has a 1st of $120,000 and a 2nd of $2,000. They are current on the first, but the 2nd is going to default on them. Would you then go and buy the 2nd? Do you get title to the property subject to the first? If so, do you then kick the people out and then contact the first to pay them off? Would appreciate any info! : ================= : Shelly, : It's difficult to believe that someone would be delinquent on a small $2,000 lien and not on a much larger senior lien for $200,000. But yes, I'd go to the foreclosure auction of the 2nd and bid on it. If I was the highest bidder I'd get title to the property, subject to the balance of the non-delinquent 1st. : Then I would acquire possession of the property and keep up the payments on the 1st until I resold the property. At that time, at the close of my re-sale escrow, the 1st would be paid off from the purchase funds deposited into escrow by my buyer. : 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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