All Forum Posts by: Fred Kite

That's great info, thanks! The senior mortgage has foreclosed on the property scheduled for auction in 2 months. Additionally, the property was already listed in MLS and my bid was accepted prior to me and both agents being aware of the existence of the 2nd mortgage. The 2nd mortgage holder is BOA. So pretty much short sale or bid at county foreclosure auction?

Thanks again.

Well, one lawyer is the title agent who found the 2nd MTG and the other lawyer is representing the seller in the foreclosure.  I'm just not sure what the incentive is for them to push for a short sale is being that they most likely have no equity at the end of the day.  Maybe to avoid the hassle of having to file for bankruptcy?  I probably shouldn't say which specific property it is since I may have to bid for it at auction and I wouldn't want to inadvertently generate any extra interest in it.

Funny thing is that I did my own research initially and missed the second mortgage.  The second mortgage was attached to an alternate spelling of the owner's name and for some reason I'm still unable to do a record search by legal description of the property (name) on the Palm Beach Clerk's online system.  Luckily the title agent is better at the record search than I am.

Another question- the foreclosure judgement on the property DOES NOT list the second mortgage holder as a defendant.  Is this going to be an issue if the property makes it to auction?

Hi Wayne,

Yes, the property is in foreclosure.   Would you mind pointing me at the clause that gives the seller an out on the contract?  I'm not finding it after reading over my contract.

Thanks!

After executing a contract with a seller and passing the inspection period the title search turned up a second mortgage that puts the seller under water on the property by something in the neighborhood of $50k.

The contract was in Florida done AS-IS.

Do I have any ability to force the sale to be completed and acquire a clean title?  The seller does not have the ability to pay the $50k and will likely wind up in bankruptcy.

There is a house in pre-foreclosure in FL I am interested in buying for rehab and to live in.

The first mortgage is around $200k and there is a second mortgage for around $100k.

House is in very poor condition and needs to be gutted.  In current condition the property is probably worth $270k.

The house is scheduled for a foreclosure auction in a few months.

Is there anything I can do to get a leg up on purchasing it?  I am a cash buyer.  I've heard about people buying up the second mortgage at a discount to get an advantage in an auction.  Is this a viable strategy and how could I approach the lender to maximize my chances of success?