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

Posted by Michael - Illinois on December 03, 2002 at 00:02:24:

In Reply to: Re: 2nd mortgage sold at auction. Buyer can't buy out first mort posted by Jim V on December 02, 2002 at 23:21:49:

If the bidder that won the auction on the second mortgage can't pay the balance owed on the first mortgage, aren't I still responsible for amount on that mortgage (the first)? There seems to be a strong possiblity that this will be the case. If he can't pay the amount owed on the first mortgage (about 100,000) than what happens to the property? What happens to his position? Where do I sit in that situation?

Thanks,
Michael

: Assuming the first goes to auction, any overage from that sale would go to the new owner(bidder from the sale of the second).

: Just a guess, but I'd expect the bidding to cover all amounts you owe on the first, plus a little bit over. If there is a new successful bidder, they will become the owner of the property.

: You do not own the house, so paying the arrearage will only benefit the current new owner.

: Move on, and consider yourself very fortunate.

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Comments:
: If the bidder that won the auction on the second mortgage can't pay the balance owed on the first mortgage, aren't I still responsible for amount on that mortgage (the first)? There seems to be a strong possiblity that this will be the case. If he can't pay the amount owed on the first mortgage (about 100,000) than what happens to the property? What happens to his position? Where do I sit in that situation?

: Thanks,
: Michael

: : Assuming the first goes to auction, any overage from that sale would go to the new owner(bidder from the sale of the second).

: : Just a guess, but I'd expect the bidding to cover all amounts you owe on the first, plus a little bit over.  If there is a new successful bidder, they will become the owner of the property.

: : You do not own the house, so paying the arrearage will only benefit the current new owner.

: : Move on, and consider yourself very fortunate.


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