Buying a 2nd Mortgage

I was wondering how hard it is to buy a second mortgage from an institutional lender, GMAC in particular. The situation is that the seller is four months behind on his first, but the second is current. Would the 2nd mort. lender be interested in selling at a deep discount if the mortgage is current?

ARV: $325K
1st: $198K - $6400 behind
2nd: $135K



In your scenario the second mortgage is quite big. In the end if the first lender forecloses the second gets nothing. That being the case the second will be interested in selling or shorting but you must show them that the first is foreclosing.

If the market value is high on the property, then the second might be interested in paying off the first position and foreclose on the home itself.

To your continued success,

  • Nick Tang -

I got a situation… My brother is on the deed on a property. He is not in the mortgage. I helped the homeowner to take on the first mortgage and the Heloc he has. I notified both liens holders I am the trustee of the property… Now the homeowner is gone. I guess he left the country. Both Mortgages are current. I want to refinance the property at existing current value, how could I convince the first lien holder that the homeowner is not longer in the picture, without telling them my brother is on the title. Also, I want to get rid off of the HELOC.

Please help me, I need to help my brother.

Your reply will be so much appreciate.


Thanks Nick. The house is in really good shape, and it’s in a nice neighborhood. The seller is in Chapter 13 bankruptcy, and the court has ordered that the property be sold by 1/31/09. In your mind, how would this little wrinkle affect the 2nd’s willingness to sell?