I’ve read through your posts, thank you for the great info! But I had a few more questions and I am hoping for some clarification. I am getting ready to bid at an auction, I ordered a preliminary title report and it’s clear other than the 1st and the 2nd mortgages. I am worried about there being other liens that are not listed. Should I be searching both of the owner’s names to make sure there are not personal liens against the home as well? Or if the preliminary title report didn’t show anything is that good enough? Should I pay to have a full title report done? Also, If the 1st loan is for 600K and the 2nd (home equity line of credit) amount is 200K and bidding starts around the 600K range is this enough to “assume” I am buying the auction from the 1st and thus the 2nd will be wiped out? I am purchasing to live in the home not as an investor. Do I have more “legal rights” as opposed to an “investor?”
The 1st and 2nd are from the same bank but currently opening bid is set just a little over 1st. I realize that this is just an estimate and no weight can be put into this number, but the 2nd is a line of credit. So on auction day if the opening bid is just a little over the 1st loan amount does that mean that the 2nd is either non existant (they didn’t use the line of credit) or could that mean that I bid and then later realize that I really way over paid for the 2nd and am now still on the hook for the 1st? THANKS for your help!!!