Acquiring Junior Lien and Foreclosing

[Mike Cartmell]

I have the opportunity to acquire a 2nd note which is non performing with the intent of foreclosing and hopefully acquiring the first mortgage to do so.  I am very green when it comes to note investing and am wondering what the process is to foreclose on the 2nd.  I have the capital to purchase the 1st mortgage but don't know how to start the process if it is even possible.  I'm sure this has been done and am looking for any guidance or references to learn more.  Thanks in advance!

[Andy Mirza]

@Mike Cartmell If you purchase the non-performing 2nd, it's simply a matter of initiating foreclosure using an attorney or trustee. If the borrower fails to reinstate or payoff, you can go all the way to the foreclosure sale. If no 3rd party bidder wins the sale, the property will revert to you as the beneficiary. You record the Deed and become the new owner of record. The 1st note does not go away. You would have to start making payments on the 1st or they may foreclose on you. If you have the capital to pay the 1st off, you can request a payoff and make payment in full to release their lien.