Lien Repayment

[Jennifer Ceren tapp]

Hello all,

I need your guidance please!  I have found a property at auction that is a massive deal. I did my due diligence and discovered it does have a lien against the property for a balloon mortgage of ~44k.  Even with the balloon mortgage, the home is still a great deal.  If I buy this house at auction, do I immediately have to pay off the balloon mortgage or is that only due if I try to sell the house in the future?  Thanks for all of your guidance!

[Wayne Brooks]

@Jennifer Ceren tapp If so, that second Mtg no longer exist, due to the foreclosure by the first. You will never see a "satisfaction recorded", it's just an "operation of laws". Since this is an REO auction, they'll be giving you clear title against any recorded liens. But also important, you think it's a screaming deal because you are looking at their low ball teaser "opening bid", which the property will never sell for. There will be other bidders, and the bank has a hidden reserve amount which is much higher than that.