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Updated almost 12 years ago,

User Stats

292
Posts
34
Votes
Sean Dezoysa
  • Investor
  • Toledo, OH
34
Votes |
292
Posts

"Foreclosure for Title"

Sean Dezoysa
  • Investor
  • Toledo, OH
Posted

hello, my local REIA meeting someone asked an experienced real estate investor how to buy a property with bad credit. He responded with several suggestions, one of them the following:

"You can buy the second/third liens for a discount, foreclose for title, and then you're allowed to pay on the first."

-------

This went over my head. I understand that if you hold a lien against the house, you can protect your interest by paying on the liens above you. What I don't understand is how you can "foreclose for title", I thought foreclosing always forces the house to public auction (and the first position lienholder takes title only if no one else places a bid).

Is it really possible to foreclose directly for title, completely skipping the public auction, with some kind of clever contract clause?

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