Buying an auction property subject to a PHH first mortgage

[Ryan McNeil]

I recently "won" a foreclosure auction where the second mortgage was being foreclosed. This was only the 4th time I attended an auction and first time bidding. I had done some due diligence checking land records etc. and was comfortable with the price, but my attorney had not actually handled something like this only knew the general rules of taking the property subject to the mortgage, and we both assumed it would be straightforward to refinance and pay it off. When I talked to a mortgage broker about refinancing he raised concerns about obtaining payoffs and refinancing a mortgage that isn't in your name. The property is located in West Hartford, Connecticut and the first mortgage is with PHH. If anyone has experience dealing with this unique situation, PHH or general guidance it would be greatly appreciated. Thanks, Ryan.