Need Help Understanding Mortgages

[Melissa Searing]

Hi BP, I was "driving for dollars" today and saw a run-down house in a prime area. I found the owner's mortgage info on the county website, but I need some help understanding her mortgage situation. Her house was sold to her by a family member for $9 is 2002 In 2007, she took out a 20 year mortgage for $35k. In April 2008 she took out a 15 year loan for $58k. It does not indicate that it is a first or a second mortgage. In October of 2008, she took out a 20 year mortgage for $98,000. It doesn't say anything about being a first or a second mortgage either. She also has a Home Equity Conversion Mortgage (reverse mortgage) from 2009 which says it is a second mortgage for $270k. Does this mean that the $98k loan was most likely a refi, combining the first 2 loans? Especially since it does not say it is a second mortgage? And then, would the HECM be IN ADDITION to her $98k mortgage, since it is a "second" mortgage? Or do you think it was used to pay off the other mortgages? I'm not sure how HECMs work. I think the ARV for this property could be around $370,000...just trying to see if it's worth pursuing. Thanks so much for your help.