Courthouse Auctions Deed of Trust Identifying 1st & 2nd Mortgages

[Bryce Davis]

I am in the process of bidding on my first courthouse property. I am aware of the due diligence, title search, comps, etc...

I also know how some second or third lien holders may be the ones foreclosing on the property. An example would be someone took out a 2nd mortgage for their pool, you bid on the auction thinking you are bidding on the 1st mortgage and get stuck with the 2nd mortgage.

I have online access to the research the deeds. I do not know how to correctly identify the which is the 2nd and the 1st. Granted I could look at the higher amount, however that is not accurate.

Could someone please point out the method to identify what mortgage is filing for foreclosure?

Also please do not tell me I should get a title company to do the work. I am doing that as well. However, I want to be able to weed out the properties I am not interested in before paying a title company.

[Wayne Brooks]

Maybe. One caveat to the "first in time, first in line" rule is that a mortgage may be subordinated to a later filed mtg. Happens all the time when someone refi's a first mtg, but leaves a HELOC in place. You have to actually read the mortgage document, both mtg documents particularly the later one as it may have a subordination agreement from a previously recorded mortgage.