2nd mortgage sold at auction. Buyer can't buy out first mort

Posted by Michael - Illinois on December 02, 2002 at 23:01:34:

Hi,

My second mortgage was sold at auction. It went for more than I owed. I've gone to court and collected the overage. This made me happy.

The buyer didn't realize there is a 1st mortgage on the property. I went to the auction and they informed all that attended that there was an outstanding 1st mortgage, but apparently he didn't understand (he spoke broken English).

Anyway, he is having a hard time coming up with an additional 100,000 to pay off the first. The first mortgage goes to Auction in a few days. I’m wondering what happens if he can’t pay the balance on the first.

I live in Illinois and I’m not sure what the procedures are in this situation. I’m about $17,000.00 behind on the first mortgage. Can I pay the arrearages and keep the home (doubt I would want to do this, even if I could)? If I could get someone to buy the house at auction, what would happen from there? The house is worth about $180-190,000. Where would that leave the winning bidder of the second mortgage? Would the house have to be sold to satisfy both parties? I’m just trying to find out what’s going on and to find out what my options are.

I thought this mess was done after the second mortgage went to auction and someone won the bid. I figured they would pay off the first and I was free and clear. At that point I was more than happy to break even. Now I don’t know what is going on. Any help would be appreciated.

Thanks,
Michael

Follow Ups:

• Re: 2nd mortgage sold at auction. Buyer can't buy out first mort - Steve 14:59:03 12/09/02 (0)
• Re: 2nd mortgage sold at auction. Buyer can't buy out first mort - JD 23:23:10 12/02/02 (0)
• Re: 2nd mortgage sold at auction. Buyer can't buy out first mort - Jim V 23:21:49 12/02/02 (3)
  • Re: 2nd mortgage sold at auction. Buyer can't buy out first mort - Grace 12:54:38 12/04/02 (1)
    • Re: 2nd mortgage sold at auction. Buyer can't buy out first mort - Michael - Illinois 05:10:01 12/05/02 (0)
  • Re: 2nd mortgage sold at auction. Buyer can't buy out first mort - Michael - Illinois 00:02:24 12/03/02 (0)

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Comments:
: Hi,

: My second mortgage was sold at auction. It went for more than I owed. I've gone to court and collected the overage. This made me happy.

: The buyer didn't realize there is a 1st mortgage on the property. I went to the auction and they informed all that attended that there was an outstanding 1st mortgage, but apparently he didn't understand (he spoke broken English).

: Anyway, he is having a hard time coming up with an additional 100,000 to pay off the first. The first mortgage goes to Auction in a few days. I’m wondering what happens if he can’t pay the balance on the first.

: I live in Illinois and I’m not sure what the procedures are in this situation. I’m about $17,000.00 behind on the first mortgage. Can I pay the arrearages and keep the home (doubt I would want to do this, even if I could)? If I could get someone to buy the house at auction, what would happen from there? The house is worth about $180-190,000. Where would that leave the winning bidder of the second mortgage? Would the house have to be sold to satisfy both parties? I’m just trying to find out what’s going on and to find out what my options are.

: I thought this mess was done after the second mortgage went to auction and someone won the bid. I figured they would pay off the first and I was free and clear. At that point I was more than happy to break even. Now I don’t know what is going on. Any help would be appreciated.

: Thanks,
: Michael 



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