Where to Find & Purchase 2nd Lien Foreclosures

[Ashley Rose]

Hello Everyone, 

My name is Ashley and I am Atlanta Investor and Real Estate Agent. 

I recently attended a real estate weekend seminar where the speaker said that it was possible to purchase 2nd lien foreclosures for a trustees deed. He explained that the risk here is that the 1st mortgage company would foreclose as well and their debt is not removed even though you would be the owner of the property with your trustees deed.

The opportunity to make money comes after the 1st mortgage company foreclosures. They will collect their balance and anything left over from the auction moneys beyond what is owed to them is due to the most recent owner on the deed which would be whoever purchased the 2nd lien.  

Example: 1st Mortgage is 100K balance to Bank of America. 2nd lien Holder is Wellsfargo for 50K Home Equity Loan. 

House first gets foreclosed by WF and you win the bid for say 5k. Then you get your trustees deed (essentially owning the property). 

At this point the property belongs to you but the Bank of America still has a lien attached to the property for 100K. 

Now Bank of America forecloses because the original owner is not paying the mortgage anymore due to the first foreclosure on the 2nd lien. Let's say the BOA foreclosures and the highest bidder pays 175K. 

Bank of America would collect their 100K and the balance would be due to the last person on record for the deed which is you (because you purchased the 2nd lien foreclosure). The speaker was saying the attorney is obligated to notify you of any leftover proceeds. 

-Has anyone heard of this strategy for investing and/or know where second foreclosure liens can be bid on? He said you can do this online from anywhere???