I barely made a profit and I paid cash for everything.

Now my concern is that the 1st mortgage may also foreclose and sell the property - and I would lose the property and the money i paid for it too.So can i offer to pay their balance and stop the foreclosure?

If you don't mind that all you get to borrow is 70% of what your true property value is then i suppose a HELOC isn't the worst way to go.In your situation, expect the bank to base their lending decision on what you paid for the property 6 months ago.

As others have said, it could be a situation where they are making you wait to get paid because their other creditors draw a harder line when it comes to being paid.

It depends on what your policy states.Most of my clients who have had total losses(max policy payout) will get paid directly and general contract the rehab or sell as is.  

In other words you get it at current value, not what your grandmother paid for it. 

In the end, another investor paid more than the asking price for the property.

Hi Melissa, The Auction i was in was Ending 24Hrs from My post Date, And there were Simply Too Many Houses & I Did not Have Them Narrowed Down Enough as the Auction of 6,800 Houses Closed .Although I Learned A lot throughout the  (Online Tax-Foreclosure ) Auction process, This Part/the " Legal Land Description + Matching it to a " plat Map" Really shook me and ate up Most all of my time Trying to figure this out ,As people/the County were "selling an Address" only to find out it was a Vacant piece of Land next to the home that they hadn't paid the taxes on.This was Frightening that i would purchase Something a Home only to find out it was Not a Home at All.ANYHOW , I WANTED TO GET BACK AND THANK YOU (though this seems alot of work for 1 home when looking at 100s-1000s to Analyse) Wish there were a More Accessable way for the public to match up these "Legal Land Descriptions" Rather then Feeling as if your "Bugging" an Agency for their info..Esp if for Several different properties.I will be Entering another Auction in a Week or so & (Although i will really need to narrow down my interests to use this method) I AGAIN AM GREATFUL FOR THE INFO & WANT TO THANK YOU SO MUCH, I LITERALLY COULD NOT FIND ANY, UP TO DATE,  LEGITIMATE RESOURCES,HOPEFULLY THIS WILL HELP NEXT TIME :)

I simply want to borrow the money by Note for the loan amount plus a nominal interest rate to be paid when the note is called.

What I'm actually asking if you were to wholesale a pre foreclosure does the new buyers cash go straight to the mortgage company to settle the debt or to the seller then he is to settle his existing mortgage?