Buying a 2nd mortgage at Sheriff Sale

[Martin Kruger]

Would be happy to hear about anyone buying a 2nd mortgage at Sheriff Sale or advise.

Here is what I am looking at per the Owner and Encumbrances Report I pulled-

1. 1st mortgage from 5/1999 securing the original amount of $37,000.00

2. 2nd mortgage from 12/2002 for $195,000 Foreclosure sale at Sheriff Auction with balance of $20,000

3. 3rd mortgage from 11/2005 for $70,000

4. No liens or bankruptcies

5. 12 month redemption period.

Pulling comps the AVR would be $275,000 being ultra conservative.  

Looking to by the 2nd mortgage at Sheriff Sale.  What are the implication of the existing 1st mortgage?  What would the strategy here be?  

Would love to hear your advise or similar experience. 

@dave van horn do you have any advise?

Thanks everyone!