Need to set the record straight. On a foreclosure sale with a first and second mortgage…if the first is in default, would the second be wiped out at foreclosure? Wouldn’t the second likely bid at the auction? Stupid Question? Thanks!
The second will look at it and decide if it is worth their time and money.
If the property is worth $100,000 and the first has $85,000 on the line and the second has $10,000. It is very rare for the second to bid past the $85,000.
They are not in the biz to be property owners.
Bruce
Thanks! I have a backwards situation. First, with $23k judgement and second of $85k…don’t ask me how they ended up in foreclosure on the first and not the second. So, in this case, the second would be wiped out (if they chose not to bid)???
I have seen this happen.
By law. All parties that have a lien on the property will be notified of the sale.
I am sure that the second will be at the sale and bid.
Try a short sale. The first probably will not come down. But the second should.
If you can get the numbers to work. Go for it.
Bruce