All Forum Posts by: Jose T.

Steve,

On the auction it says the bid was won by the "Plaintiff" and it list the couple's name. How can they be the plaintiff of the second mortgage when I don't see their names on any of the court documents?

Alright here's the whole story.

House value 400K
2000 Primary mortgage 200K
2006 Second mortgage 700k

I started getting interested in auctions 8 months ago and noticed the house sold for a bid of 330K but the bidder walked. When I researched county records I spotted the primary loan. It was still going through the judicial process.

The second mortgage goes to auction again. This time someone bids 275K and again walks away. Two deposits of over 10K down the toilette bowl.

A month after this, the final judgment is finally handed down for the first mortgage.

And...

Here we are today with the auction of the second mortgage going for the third time. It appears this time the lien was sold before the auction to a couple in order for them to secure the right to title and take out the first mortgage.

How would you guys have handled this if you were really interested in the property?

Wow some great advice and insight on here. Thank you all for replying.

Well the the second mortgage just went through and they keep the maximum bid at the judgment amount. It was way underwater which is why I couldn't just buyout the borrower. When I look at the winning bidder it's the plaintiff but it's not the the bank or the LLC in the assignment of judgment. It's a husband and wife! They will probably buyout the first or do a subject to before the first mortgage goes to auction.

Man I'm kind of frustrated that this can even happen. The couple must have made some arrangement with the second bank to buy the junior lien before the auction.

"The bigger risk may be that junior lienholder (or, an investor who's purchased the junior lienholder's interest) would redeem"

Funny you say that. About a month ago the second mortgage filed for an assignment of judgement and handed things over to some other company which appears to be some sort of trust or investment company.

BTW the second mortgage had gone to auction 2 times before and both times the bidders walked away and lost deposits of about 12K. Someone must have warned them there was a primary mortgage on the house. I'm pretty sure it was the owner.

I'm definitely going to talk to a lawyer. Thanks Jon.

Jon,

Thank you for replying. I have read several of your post and value your information and opinion.

Here's the situation

I have in fact done a title search. They owner and his wife do owe the IRS money. I'm understand the that IRS can take the house from me within a certain period of time. I'm fine with that as long as they pay me the cost of paying the first and second mortgage. I know they do not reimburse for any improvements made to the home.

The redemption period in Florida is usually about 10 days. There is really no redemption period per say. It is from the time the winning bid is made till the certificate of sale is issued which in Florida is about ten days.

I wanted to ask you if the owner has to pay just the winning bid amount or the entire cost of the final judgment in order to get the house back from me?

Thanks again Jon

There will most likely be a lot more bidders waiting for the first mortgage to go auction. I do not want to get into a bidding war for the house. I'd rather win the auction for the second mortgage and payoff the first for the judgment amount.

I just want to know if after the certificate of sale is issued to me i can simply payoff the first mortgage or if the original owner still has the right to pay it.

I'm interested in bidding for a home at auction. There are two mortgages on the same property going to auction within 3 weeks of each other. The first mortgage that is going to auction is a secondary mortgage. If I bid on that one and win does that give me the right to pay off the primary mortgage before it goes to auction. I also wanted to know if by winning the second mortgage the rights to redemption on the first mortgage are stripped from the original owner and passed on to me?

I want to make sure that if I win the auction on the second mortgage:
1. I can pay of the first before it goes to auction.
2. The original owner cannot simply pay off the 1st mortgage and take the house back.

Thanks.