I have a 1st mortgage which is current (~156k) and a second mortgage which is forclosing (principle balance is 36K but asking for ~85k which includes mortgage arrears for years of non payment) the house recently appraised at ~205k. The 2nd mortgage is not willing to settle for anything less than the full balance which is even more than the house is worth. At forclosure i know the the 2nd mortgage can use a creditbid of ~85k. I would like to also bid on the house at the auction but not sure if i will be bidding for the 2nd lien or the whole house. I just need to know what happens if I win the bid. (Who gets paid the amount of the bid the 2nd or first) can the 2nd reattach the lien and forclose again?? How will the 1st mirtgage be which is current be effected by this if at all?
As a practical matter, if you have the money to pay more than the mortgage holder's 85K bid at the foreclosure sale, it would seem foolish not to just pay the judgment and stop the sale, rather than potentially paying a higher price if there are other bidders. That said, it would be well worth discussing the specific facts of this situation with foreclosure defense counsel before taking action in this matter.
Any answer provided on the AVVO website is for informational purposes only and does not constitute legal advice for your specific situation. You should always seek legal advice before taking any action which may affect your future rights. Your local legal aid office may well provide information or access to free legal advice and your state bar organization may provide referrals to reputable attorneys who will provide advice on a reduced cost basis.
When the foreclosure happens, whomever bids takes it subject to the first mortgage, which its lien will survive.
So in essence, if you win the bid, you have to keep paying your first mortgage.
Any time, prior to purchasing a foreclosure, you need to retain an experienced mortgage foreclosure attorney, who will have the expertise to help you avoid problems with foreclosed properties, which can have devastating financial consequences for the uneducated and unprepared. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation with an experienced NC mortgage foreclosure attorney. Use AVVO's Find a Lawyer tool to select a qualified attorney. Good luck. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
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