All Forum Posts by: Jonathan B.

I think you are confused.

You said the first would bid on the 2nd. They won't. That didn't happen to you. That would not make any sense. If you want to continue to be cryptic with your two word responses, by all means, continue but without detailing your experience, you are eroding the possibility of any of us having any insight to what it is you are saying happened, or warning us about what could happen, that i'm refuting (Based on what you wrote). Anything is possible but its highly improbable that what you said happened, happened. 

I've only been doing foreclosure sales for 25 years so, i admit, there might be something I've missed, and would really appreciate the education you are offering to all of us rookies.

If they started foreclosure as the 2nd, the owner of the senior knows about it and possibly has been in touch with the owner of the 2nd. Or not. Expect the first to possibly bid at sale up to their loan also and also other bidders if there is a lot of equity.

An O&E report or county search would identify the owner of the first and you can start hunting them down that way. With the sale there are so many variables. Good luck & let us know how it goes...

If you purchase from the 2nd lien-holder's foreclosure, you have statutory rights to obtain a payoff from the senior lien holder and, they have a statutory obligation to provide you with that payoff within a reasonable period of time. Don't count on them being aware of it. Count on having to get the crayons out and connect the dots for them with clear, threatening but nice language in your request. I have to do this all the time when i foreclose as a junior lien holder and then go to pay the senior off.

Be aware, they don't, don't have to, and won't negotiate one dime with you, and will throw every single nickle and dime fee they can get away with on the demand to you but they will have to comply eventually. 

@Jonathan B. It totally depends on what your needs are. You can really only go to a local bank or credit union if your income and DTI supports the loan requests as they calculate global borrower financials (I know this because this is what I do for a living). However, if they're only using the asset to qualify and not looking at personal income. I think 6.50% is accurate pricing, especially in today's market. However, I do 30 year amortizations and 10 yr fixed term... 20 year am sounds a bit short.

No thanks, @Jonathan B.. I'm seeing rates in the 4s. 20-year term with the rate adjustment is pretty standard on commercial mortgages. Talk with some local CUs. One near us recently quoted 4.75%, 30-year amortization, 15-year term, 5-year rate adjustments.