Buying a Foreclosure
I’m smitten with the outside of a building that is in foreclosure — an auction’s been scheduled once already but there’s another one coming up. I haven’t tried to contact the owner yet, and will do that, but I’m wondering if anyone else has insights here. Notably, the owner holds two mortgages, both of which…
I’m smitten with the outside of a building that is in foreclosure — an auction’s been scheduled once already but there’s another one coming up.
I haven’t tried to contact the owner yet, and will do that, but I’m wondering if anyone else has insights here. Notably, the owner holds two mortgages, both of which are in Lis Pendens. Can the bank (both are one bank) foreclose on one mortgage and not the other? (Leaving us with a debt encumbered property)
Thanks all. Most helpful.
Good luck, serpentor. I would offer my $.02 but I think a 10-minute conversation with a lawyer who knows this area of law is your best bet. If you have already been dealing with a RE attorney you like for your previous RE forays, start there.
You can either talk to the owner re. a short sale or wait for the auction. This story today highlights some of the perils of folks bidding at foreclosure auctions w/o legal advice, so would def. recommend getting a lawyer (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/01/BURU1EL529.DTL)
You also need to be aware that there may be one or more tax liens that need to be satisfied. Your lawyer will advise.
It wouldn’t make sense for the bank to foreclose and force an auction and satisfy one, not both mortgages. If you want to buy the property for less than the balance due on the 1st and 2nd (and if you can still do it before they auction it off) you can make an offer to the seller which they an take to the lender to see if they’ll approve a short sale.