Is it better to purchase first or second mortgage? - Posted by Scott

Posted by Scott on December 11, 2000 at 23:00:11:

I am trying to learn about buying discounted mortgages and am confused about some things I found in the archives.

On the one hand I read that you can purchase the 1st mortgage (preferably at a discount) then carry out a foreclosure to clear out the second mortgage (& others liens)

But, I’ve also read that buying a discounted second can put you in control of the first (make up payment and continue to pay).

What prevents the first from wiping you out as the holder of the second, and if they can’t then how can you you wipe out a second if you hold the first?

Hope this makes sense. Also, if anyone can recommend the best course for learning about discounting mortgages.

Thank you for any responses.