Posted on: 16th Sep, 2008 08:00 pm
i plan to attend an auction tomorrow morning at the county courthouse here in ny. the judgement is for a $160,000 mortgage, but it appears that on the same day the purchaser also signed a 15 year mortgage for $40,000 from the same mortgage company. the purchase price was $200,000.
the judgment amount is for $163,000 and some change. i've had two conflicting pieces of information given. one person told me that if i purchased the house by bidding, let's say for $170,000 then the second lien or mortgage i wouldn't be responsible for, it's essentially nulled.
i have somebody else telling me that the liens are with the property not the person therefore, i would be responsible for this additional $40,000 second mortgage after i took ownership of the property.
can somebody provide some insight for me please, as you can tell, i'm confused!
the judgment amount is for $163,000 and some change. i've had two conflicting pieces of information given. one person told me that if i purchased the house by bidding, let's say for $170,000 then the second lien or mortgage i wouldn't be responsible for, it's essentially nulled.
i have somebody else telling me that the liens are with the property not the person therefore, i would be responsible for this additional $40,000 second mortgage after i took ownership of the property.
can somebody provide some insight for me please, as you can tell, i'm confused!
Hi donvp,
Welcome to forums.
I suppose the other person is correct in saying that the mortgage company may hold you responsible if the second mortgage is not paid off. Ideally, liens come along with the property.
The seller should actually be negotiating with the mortgage company regarding what to do with the second loan. So, I feel you should have a clear talk with him as well as the company regarding the second lien. And if you find that the seller isn't interested to pay it even though it will affect his credit, I suggest that you stay away from such a deal.
Thanks
Welcome to forums.
I suppose the other person is correct in saying that the mortgage company may hold you responsible if the second mortgage is not paid off. Ideally, liens come along with the property.
The seller should actually be negotiating with the mortgage company regarding what to do with the second loan. So, I feel you should have a clear talk with him as well as the company regarding the second lien. And if you find that the seller isn't interested to pay it even though it will affect his credit, I suggest that you stay away from such a deal.
Thanks