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"Scott" <fskennedy@gmail.com> wrote in message
news:1172171871.828695.42690@s48g2000cws.googlegroups.com...
>
> I'm still interested in buying the house. I bid $ 430, but the short
> sale was rejected by Bank#1, probably because of the outstanding $ 50
> lien of Bank #2.
>
> Given the details, what would you suggest? Thanks.
I may be wrong about this, but I do not think Bank 1 owns the house yet
because there has been no Sheriff's Sale. So Bank 1 cannot sell the house to
you because it cannot give you a clear title to the house (due to Bank 2's
mortgage, the back taxes that are due, etc.).
But I think if $415,000 is owed on the first mortgage to Bank 1, Bank 1
would be glad to take $415,000 in cash from you and assign the first
mortgage to you. Of course, you wouldn't want to do that.
When you say, "I bid $ 430, but the short sale was rejected by Bank#1,
probably because of the outstanding $ 50,000 lien of Bank #2.", I think Bank
1 is saying you would need Bank 2 to remove the lien by accepting what would
be left from your bid of $430,000 after Bank 1 is paid ($415,000), and the
back taxes are paid ($6,000).
And, yes, it's a bad deal to buy the house for $430,000 at the Sheriff's
Sale or anywhere else.
What you probably could do (but it wouldn't be a good deal either) is buy
the house from the owners for $1 subject to the existing mortgages. Then
you would have to pay the arrearages in the two mortgages to bring them
current and then keep making the payments. You would also need a title
search and title insurance to make sure you were getting a clear title (such
as no existing judgments against the current owners) with the only
exceptions being the two existing mortgages. And, yes, Bank 1 and Bank 2
could accelerate their mortgages and demand that they be paid in full if and
when they find out the ownership changed, but as long as they are getting
paid, that is unlikely.
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Re: Which Bank Do You Think Will Buy this House At The Sherrif's Auction?
