Every investors NIGHTMARE? Both properties have LIENS!

[Kaynan Na]

I want to share my story and make it aware to others but also looking for opinions and thoughts. i purchased two properties in broward county florida from the foreclosure website auction. I purchased them with my company name & rehabbed them to find out that they both have a Morgage lien tied into it that i was not aware of. In my home state of ohio, these auctions come with clean title and they include all leins and morgages in the starting price so i figured it was the same for florida.

first property i am a defendant on, the second im not because the foreclosure process started before my purchase date so im not entitled to the lien.

Property 1 im 120k into it, the morgage company wants 136k . its worth around 190k currently, rent is 1800 if i wanted to rent it, HOA is 450

Property 2 im 280 in to it, the lender wants 360, but its worth 500 and can easily appreciate more quickly, rent is 4000, HOA is 1400

i have a family friend who is a lender whos willing to help offer cash to the lenders and then i can either sell properties for a lesser loss than 400k or hold for a few years and throw tennants in it and sell after to break even with the appreciation

I'm hoping the lenders for the second propery is willing to work with me , and maybe even negotiate. i hired a lawyer today. fingers crossed.

BEWARE everyone because im in a very bad scenario :(

[Matt Devincenzo]

Your description doesn't make sense. Did you purchase a foreclosure on a 2nd position lien that was subordinate to a senior loan which is still in place? If so then I'd be surprised if the same scenario couldn't occur in OH. It's a pretty widely discussed issue with buying foreclosure auctions. If your foreclosure was for the first, then any subordinate liens should have been stripped. Or are the other liens completely unrelated to mortgages and are some other attachment?