From my understanding if a second lien is being foreclosed on, the owner will still assume the first lien. However what happens when the lien holder of the first and second loan is the same? Do you still need to assume the first lien if you purchase the property at an auction with the second lien being foreclosed on?
Also, if you do assume the first loan, you don’t need to pay cash right away right? How would you go about finding what rate it will be at, the term, etc before actually assuming it.
If the first hasn’t filed an NOD, you’ve got at least 4 months to deal with it.
Most loans have a due on sale clause - meaning they could call the loan all due and payable since there has been a change of ownership.
The interest rate on the existing lst loan is set. IF they let you reinstate and bring the loan current and make payments - it would be at the existing rate. Someone who has been around for a while could make an educated guess as to the terms by knowing who made the loan and when it was made.