Junior Lender Foreclosure questions

[Evelyne Ling]

Hi everyone,

I'm a junior lender on a property, and my attorney is advising me to buy out the first lender so that I can foreclose on the property myself. The sale proceeds likely won't fully cover my loan.

I have a few questions:

1. What documents will I need to complete the buyout of the first lender? I asked the first lender which is a big company and they did not know.
2. If I buy out the first lender, can I foreclose with the total amount due for both loans combined, or will it remain as two separate loans, with only one being foreclosable?
3. The house has a lot of deferred maintenance. Would it be better to do some remodeling and deduct those costs from the sale proceeds, or should I foreclose and sell the property "as-is"?

Trying to cut my losses as the borrower got all her unsecured debts discharged through Chapter 7.

Thank you in advance for any advice or guidance you can share!