Why would a house go to auction, if there is approx $300K in equity? No second liens or judgements.


#1

Why would a house go to auction if there is approximately $300K in equity after payoff of the first mortgage?

We have searched title and there are no registered second liens or judgements (tax or otherwise) that would eat-up the equity. Any idea as to the gameplan of the homeowner in this type of scenerio?


#2

Yes, see: http://www.foreclosuretruth.com/blog/sean/five-ds-foreclosure/ for more information on why foreclosure happens when the owners have equity.