Review and confirm that all junior lienholders were given notice in accordance with the law.

I'm currently in my junior year at college 20 years old and am taking my real estate classes online.

I am a junior in college in Waco Texas and currently renting out a place for 600/month.

Their mortgage company, who has a junior lien at this point, will need to be notified too.What a mess!

You always want to know about these junior liens that may require buyer contribution before structuring your offer.  

This isn't a "Mortgage 101" answer, nor is it a "Mortgage 202" answer, this is like if you're a Junior at Berkeley or something, so I'm assuming you're into it enough to know how rental income is calculated, etc.Example.- Personal SFR house PITI is $2000. - Monthly car loan payment is $300.- No other consumer debt.- Monthly cashflow from the rental portfolio is $6,000.- 2.5x PITI+ConsumerDebt = $2300 * 2.5 = $5750, which is less than $6,000, so the "Mason Rule" says it should work!

lets say it bid to 800k you would get 200k... if 200k is your loan amount  you can only get what your unpaid balance is if it bids higher than both of the loans and all associated interest and costs then any thing left over goes to next in line IE if there are judgments or liens.. then anything left over goes to the owner of record.the HML is going to have to foreclose to get you off of title unless you voluntarily give the owner a deed in lui for some sort of compensation.. its why many first lenders will not allow junior loans.. it forces them to foreclose in a default scenario like this.so it just becomes simple math.. if the project is a half done rehab.. you can expect bids to be low.. unless the market has shot up and you get some spirited competition at the courthouse.

I can't tell you how many times I started a foreclosure as the junior lienholder with an existing first lien that had no relation to me, where a noob came out of the woodwork thinking they were going to bid on my $50,000 junior lien to buy a $600,000 house, did bid, did buy it and then got a notice of intent to foreclose from the senior lien holder 30 days later on a $600,000 balance. yeah, that happens.Anyway...that's my two cents.

I do know though:An HOA foreclosure has no effect on a first mtg whatsoeverAn HOA foreclosure Does wipe out 2nd mtg.s and junior private judgments IF they are also named/served in the action.  

They will place a junior lien on the property to ensure that you do.if you can swing 5% down (on 2-4 units) and you're a first time buyer, you might look at Freddie Mac's Home Possible mortgage.