Quote from @Chad U.:
Quote from @Barry Clay:
Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?
As others have mentioned above, the first lien might have a large payoff leaving you with little to no equity. Definitely run a title report on the property. There could be significant liens against it which could take precedent over yours if they are superior. Also they could be involuntary liens such as code enforcement or other municipal fines which also are superior to the 2nd.
I think you're spot on here. I ordered a title report, but the back-to-back hurricanes have caused delays. However, I discovered on my own that the city ordered the property to be demolished in 2022, which I’m okay with. I haven’t found any fines yet, but once the city is back on its feet, I'll follow up on that. Hopefully, the fines will be included in the title report.
