Upcoming Foreclosures

Purchase note from bank before foreclosure sale?

I am interested in a property that is in the foreclosure process and scheduled to be auctioned next month. The bank that holds the first mortgage would consider selling the note to me. There also is a second mortgage. If I were to purchase the note from the first mortgage holder how would I guarantee that I would receive the property in the auction? My understanding is that if someone bids $1 higher than I set the opening bid then the property would go to them. If I set the opening bid higher than the loan value to insure that I win would I be liable for the additional balance to the 2nd leinholder? The second is for a considerable amount and it wouldn't make sense to buy it out, not even if I got it for .10 on the dollar.

Public Comments

1. The second lien holder is out of luck in a foreclosure sale at auction on the court house steps. Any other deal ahead of time might make you liable for the balance of the other loans. Be careful.
2. YOU KNOW A SECRET THAT MANY DO NOT! Buying the note from the bank is a MUCH MUCH better idea than buying the house at auction. You just buy the note (and preferably a lenders title policy to ensure first position) and you don't need to worry about the winning auction bid because you'll have the right to foreclose! Just offer to buy out both notes. You can find out who the holders are through looking thorough the county clerk or recorder's documents! Good luck to you! ... You smart investor you!