Investor Bought At Aucion-Turns Out To Be 2nd--Wants To Quiet 1st

[John Thedford]

This is a local ordeal. Investor failed to have title run before bidding. They paid over 100K and then find out they bought the second. 1st hasn't been paid for over five years. They believe an attorney can do a quiet title action on the 1st because no action has been taken by 1st holder to collect. This is the second time a bidder bought a second but I believe the other bidder just forfeited their deposit. This bidder wired funds and THEN found out it is a second. Is this possible for a judge to simply rule that a 1st owed over a 100K automatically has no right to their funds because they have failed to act? This sound really off to me. Any legal minds have any input?

[Roman M.]

No way quiet title will wipe out the first.  

There was a ruling on the lenders stalling foreclosures.  No one gets a free ride.  

Court ruling lets lenders bring stalled foreclosures 'back to life'

http://www.sun-sentinel.com/business/fl-florida-fo...

His/Her best option is:

1.  try to buy the first at a discount or negotiate a lower payoff.

2. Don't pay real estate taxes and instead purchase the tax lien certificate and after 2 years foreclose on the taxes by applying for tax deed.  If first doesn't step in, then they get wiped out and only then he/she can quiet title.

3. Keep renting the house until he/she gets all of the money back and don't pay the first.

4.  If he/she paid over the judgement amount then he/she can contact first and have them apply for surplus funds this way some of the money goes to pay down first mortgage.  They only have 60 days for this though.