Auctions can be brutal. Make sure you do your homework.
Get the address of the property you plan to bid on prior to the auction date.
Contact a title company and have them do a complete report on the proerty. You will want to know if their are any liens on the property, as they will become due and payable by you if you are the winning bidder.
Also keep in mind you are more than likely buying the home without the benefit of an inspection. You are buying "as is" and sight unseen. You need to have cash reserves for repairs if needed.
If you are up to the task, just have proof of certified funds, report to the auction and bid.
They mostly will not foreclose, however the 1st mortgage gets notified when you are late on all secondary or subsequent loans-the first mortgage will usually step in and buy the 2nd. However, remember the 2nd mortgage can still possibly come after you for payment through various ways and even possibly send you a 1099 for the write off of debt. I would highly recommend doing a short sale versus just letting the home foreclose. Also, I would like to suggest you seek the advice of a real estate attorney and possibly your account to find out what other implications will affect you in the future.
Much success to you,
Heather Paul, Realtor
(310)586-0364 or (424)625-1037... more