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Updated over 5 years ago on . Most recent reply
HELP!! Bought 2nd mortgage on Judicial sale in Illinois, Cook ct
So I thought I was buying the 1st mortgage here's what happened.
2nd Mrg 200K in 2009 - harris bank
1st Mrg 100K in 2007 - harris bank - this is the one that is being foreclosed, but it also has a subordination file.
The judicial sale happened in Aug 2019, the opening bid was around 100K ish and I bought it for 140K ish, so the surplus is 30K.
Questions:
1. Did I buy this as a second mortgage or 1st?
2. Even though it was registered/filed in 2007 is it considered as first or second mrg?
2. The property is worth around 450K as is and if remodeled 700K.
3. What rights do I have, can I pay off the mortgage that was in 2009 and get the property?
4. What should I do?
Side notes:
a. Property is occupied and I spoke with the owner 1 week after winning and told him we want to do a cash for keys, but he was shocked that his house sold and told me that he was still making payments monthly, (I assume now that he was making payments on 200K mrg in 2009.)
b. In September the court approval supposed to happen but the owner hired a lawyer stating that he never got any notice of sale which I dought and so the hearing is next in mid-October.
P.S - I did hire a lawyer to look over the properties I bid on, but i feel like he doesn't know his stuff.
Here's the subordination:

Most Popular Reply

- Real Estate Professional
- West Palm Beach, FL
- 13,509
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@Ron S. It Was the second mtg holder (former first mtg, but subordinated their mtg) that foreclosed. Since the remaining mtg is Superior to the foreclosing mtg holder, I don’t see them getting any surplus....they wouldn’t in FL, since their mtg stays intact.
An interesting quirk in our foreclosure laws here....when an hoa forecloses, they are junior to a first mtg, but superior to a second mtg. If the hoa names the second mtg as a defendant, their mtg would be wiped out and they’d get any surplus. But, hoa’s Never name a second mtg as a defendant, their mtg stays intact and the Owner gets any surplus. I think perhaps the hoa’s never name the junior mtg so maybe the owner doesn’t fight them so hard, since they will get any surplus. I’ve seen owner’s get surpluses from hoa foreclosures from $20-$70k.