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

Posted by Michael - Illinois on December 05, 2002 at 05:10:01:

In Reply to: Re: 2nd mortgage sold at auction. Buyer can't buy out first mort posted by Grace on December 04, 2002 at 12:54:38:

This seems to be the case.

Although he was told twice at the auction, apparently he didn't understand there was a 1st mortgage (He spoke broken english). There was a bidding war between him and another bidder. He won the auction for 62k. Leaving a 100k unpaid 1st mortgage. The propery is worth about 190k, so someone will go to auction and grab the propery for about 100k and make a nice profit. Unless there are mutiple bids, leaving an overage, he stands to loose over sixty thousand dollars.

: Then, does the new second mortgage owner loose the amount of money he had paid for the second if the first is auctioned off without any overages? In another word, the second mortgage owner does not get anything plus he had lost his investment on the second mortgage?

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: This seems to be the case. 

: Although he was told twice at the auction, apparently he didn't understand there was a 1st mortgage (He spoke broken english). There was a bidding war between him and another bidder. He won the auction for 62k. Leaving a 100k unpaid 1st mortgage. The propery is worth about 190k, so someone will go to auction and grab the propery for about 100k and make a nice profit. Unless there are mutiple bids, leaving an overage, he stands to loose over sixty thousand dollars.


: 
: : Then, does the new second mortgage owner loose the amount of money he had paid for the second if the first is auctioned off without any overages?  In another word, the second mortgage owner does not get anything plus he had lost his investment on the second mortgage?


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