All Forum Posts by: Drew Mathews

Hi everyone, 

I have read many of the posts and replies to posts referencing the foreclosure process here and have also gone through the BP Foreclosure book which has been incredibly helpful so far. 

I have a more specific question to one comment I saw in reference to 1st and 2nd position liens. I am working on an auction for next week and ran across a property that the current lien is $60k, and house value is approximately 300k. In all of my research and the help of a Title company, this is the current 1st position (previous husband's mortgage was satisfied in 2015 [they divorced and she received the property], the same year this one was issued for 50k) and it shows as the only lien on the property. No other unpaid property taxes, etc. 

I feel confident this is the 1st position, but thinking through this situation logically, my question is what scenario would this person not just sell the house for ~300k, pay the 60k owed, etc. I really appreciate your help, and apologize for the long message. Even with my research, this one doesn't seem logical if the borrower has equity but I am hoping I am missing MANY different reasons why it's not as simple of a solution for the borrower as I have laid out.

Thank you!

Thank you Ron! So would it be safe to say, if there is a lender lien or higher position lien, no reason to bid on an HOA lien at auction?

An example of this on the Auction site is that the Plaintiff shows HOA for this auction even though the original mortgage has also been foreclosed on per the county records. So just a bit confusing if this auction is for the HOA lien, not the mortgage lien.

Hi All, I am curious about the technicalities of Foreclosure auctions. 

For example, is it possible that second position or third position liens are being auctioned but the First position mortgage isn't?

I understand the concept of checking for surviving liens such as Property Tax, but wanted to confirm that any foreclosure auction is for the First Position lien not any other lien and then our due diligence involves checking for other liens that may come due upon winning the auction.

Seems odd to me that you would see a $1,000 HOA foreclosure at auction but the mortgage isn't included that day, but want to confirm that can't happen.

Thank you again!