Accidentally purchased second position lien

Foreclosure Investing
1

I accidentally purchased a second position loan. Luckily it is current. How should I go about paying off the first position mortgage? Any lawyer recommendation to help with this?

2

Hi Mav, I’ve had good luck working with the prior owner to make those payments. Benefits them by improving their credit history. Benefits you by allowing you to make payments until you are ready to pay it off. But do be ready to pay it off. The lender can call the loan due and payable in full based on the due-on-sale clause. For an attorney look for a local real estate attorney and quiz them a bit on their familiarity with trustee sales before hiring them.

3

Thank you Sean very Helpful. Luckily I have additional cash if property goes back to auction.
The first lender has not foreclosed. How often should I check property radar to make sure I do not miss the auction?

4

Good question:

  1. If there is no notice of sale (title varies by state), you’ll want to see how long between the time the document is recorded, and when we publish it. That is typically 3-10 days, but with 3,142 counties it varies a lot around the country. If we are pretty quick in your area, and there is reasonable time between our publishing and the original sale date, you might be able to check once a week or even once every other.
  2. If there is a notice of sale, then it depends on whether or not you have our trustee sale tracking feature, and whether or not we do trustee sale tracking in your county (see National Coverage). Regardless you just want to keep track of the sale date. If it is a month out, maybe double check a week before, then daily as it gets closer.
    Also keep in mind that for both of the above you can set up phone or email alerts.
    Finally, given what you have at stake, just a reminder that we do, very occasionally, miss getting a document or updating a sale. As such, in this particular situation, I’d encourage you to check our work by doing your own search at the county recorder for the notice, and calling the trustee for updates once you have the notice. We shouldn’t let you down, but I’d hate for this to be that one time.
    Best,
    Sean