Need advice – 2nd lienholder tried to foreclose - Posted by Percy
Posted by Percy on July 17, 2001 at 10:54:35:
Recently received a call from a seller with several property to get sell. Here are the details on one of them.
Owner purchased property as a rental 3 years ago with new First Lien of 60K and assumed a privately held Second Lien of 30K. Several months back the tenants moved out and seller had no cash to cover payments or advertise. Seller indicates that the payments are 3 months behind and the first is now threatening foreclosure. Property is worth 105K.
My original approach was to contact the 2nd lien holder and negotiate a discount, then purchase the property subject to the first.
Upon investigating I find that the Second lien had a balloon that was due in April. The Second lien holder apparently foreclosed and filed a Foreclosure Deed. The problem is the Foreclosure Deed didn?t list the current owner as the Grantor. (It lists the individual that the current owner purchased the property from.) Second lienholder has cleaned up the property and appears to have it rented.
Seller is willing to just sign over the deed. Any suggestions on how to tackle this one?