Hi guys. We’re a few RE investors here just starting out. Among us are a broker and a few RE agents. But anyhow, here’s our question. We’re interested in bidding on a property that is going to auction. Furthermore, both the 1st and 2nd priority lien holders are foreclosing this property (both recorded NTS against trustor and an auction date exists for each). The 2nd is foreclosing BEFORE the 1st (which makes sense because otherwise they’d be wiped out by the 1st foreclosing).
- if we bid on the 2nd and actually win (if the opening is low enough and makes sense), how would we take care of the 1st? Would we be able to clear the lien, or would the 1st still foreclose anyway?
- if no one bids on the 2nd and the property goes back to Bene, what would happen next? Would the 1st still foreclose at the later date so that we can step in and bid?
We’re just trying to be completely sure before we bid on this property. The reason is that the property’s estimated value is very high because it’s a luxury home, and if it makes sense, we would pool our funds together to bid on this property. It would most likely wipe us out if we mess this up.