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Updated almost 12 years ago,
"Foreclosure for Title"
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."
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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?