Posted by Michael Morrongiello on April 16, 2003 at 23:10:37:
In Reply to: buying the first mortgage posted by Ryan barlow on April 11, 2003 at 01:07:13:
Ryan:
You have asked several questions here......First off YES you can purchase the existing 1st lien Mortgage & Note and you can typically also take an assignment of their existing legal action surrounding the pending foreclosure as well (this is something to confirm with a COMPETENT Real Estate attorney and you usually will not have to restart any legal action - however you may wish to be careful as to HOW you take title when purchasing the mortgage & Note. For instance if you purchase the 1st lien Mortgage and Note in your own name and the home is also in your name, then you would be foreclosing against yourself! -
But what if you have title to the home in your name and your purchase the mortgage, Note, and pending legal action in a corporate entity name, then the corporate entity is foreclosing on you.
Typically if you purchase the existing 1st lien and continue on with the existing legal foreclosure action the 2nd & 3rd liens will be in jeopardy. However if there is a lot of equity in the property they may very well get paid off by potential bidders at the foreclosure courthouse auction sale.
Hope the above helps.
Warmly,
Michael Morrongiello