I am writing to seek some help with a recent property I just acquired (or so I thought). I have been attending trustee sales for a few months now, and finally pulled the trigger on a property this morning. However, after placing the winning bid, I realized that the deal was too good to be true. In reality, what I won was the note on the 2nd mortgage. I paid $75k for a $175k note. I did not realize until after the fact, that there is a senior loan on the property for $365k (not including any arrears). My question is this:
What should I do now? The owners just moved out yesterday, and the home is vacant. What rights do I have as the junior lienholder? Can I obtain possession and call a locksmith to open the home? The property is located in CA.
My plan is to buy this property outright and rent/re-sell it, and I am willing to pay $280k to the 1st lienholder. I'm not sure whether to speak to the owners directly regarding this matter, or having an experienced short-sale realtor contact them.
Any help is greatly appreciated. Thanks in advance!
