Advanced: How to get Buy note or Short Sale AFTER Auction

[Neil L.]

Before saying the obvious "you cannot" answer, please read my message in full. It's unique.  Here’s the situation:

•   Kentucky, Judicial Foreclosure State (Lis Pendens)
•   House is worth 400k
•   1st Position: Santander Bank Mortgage 400k (Santander Bank N.A. FKA Sovereign Bank, N.A., Servicer is Bank of America)
•   2nd Position: Homeowners Association (HOA) Lien 5k.
•   3rd position – 10th position: Multiple Judgements and tax liens.
•   We do NOT (yet) have cooperation from the mortgage borrower or his authorization to speak to lender about his mortgage.

ORDER OF EVENTS:

1. Homeowner is discharged from Chapter 7 bankruptcy, did not reaffirm house
2. HOA Lien Forecloses from 2nd position and house goes to auction.
3. I buy house at auction for 5k (subject to Sr. Liens). Plaintiff, is satisfied in full.
4. I DO NOT PAY OFF THE 1ST MORTGAGE.
5. Commissioner issues deed and house is now in my name. ALL JR LIENS TO HOA ARE WIPED OUT.
6. We rent house to original owner and earn our money back :)
7. Owner stops paying rent so we evict as owner successfully.
8. 1st Mortgage begins foreclosure because we did not pay them off after auction.

We wish to discount the mortgage via short sale or buying the 1st mortgage note.

This is a different type of foreclosure auction or short sale question because we do not have a signed Mortgage or Note with the foreclosing lender but they still have their Note Lien in force with previous owner because they were not paid off yet. We are technically defendants in the lawsuit against the house because we now own it by Commissioner court order. Since the house already got sold at auction, I’m hoping that the rules for discounting the existing mortgage have changed to where we can now work with the mortgage company directly.

Has anyone faced similar situation or have any creative ideas on how to get this done or have a contact at Santander Bank that could help us out?

PS. We do NOT have cooperation from the owner (he didn’t like being evicted) or authorization to speak to lender about his mortgage. We may be able to pay him for cooperating if required though.