I am looking at a property where the second mortgage, held by a private party, is foreclosing. Originally the first mortgage holder (which was a bank) filed a notice of default but then this notice of fault was withdrawn. The property appears to have signifcant equity even considering first and second mortgages. Here are my questions:
- Is it likely that the second mortgage holder cured the default on the first mortgage? How would this be done? Would he/she need the consent of the homeowner?
- If the property is purchased at auction for more than the amount owed the second mortgage holder what will the trustee do with the extra funds? It does not seem they would go to the first mortgage holder since the first mortgage is not in default. Would the overage amount go to the homeowner?
- If the second mortgage holder bids more than his debt does he need to supply the full amount of his bid in cash or just the amount over his debt?
- The homeowner appears to be a savy businessman who has engaged in many property transactions but he refuses to consider any offer purchase his home prior to foreclosure. Any speculation as to why? Is it possible he is expecting that there will be multiple bidders at auction and he will get some equity out through that process?
- Is there anyway to find out how much is owed the first mortgage holder?