Golden West, purchased by Wachovia, owned both the first and second mortgages. As customarily, when a lender owned both first and second liens, the second lien in default will foreclose first to protect its position. This is the case. The second, then sold the property, as REO for $470K, minus selling and holding costs of @$35,000 and first trust deed of @410K in principal, Wachovia took back @33 cents to the dollar.
Your play would be to negotiate to buy the 1st and 2nd notes at a discount where they were in default, similar to current short sales.
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if, there is a contingency period on the contract for inspections then absolutely. AS-IS simply means seller is not doing any repairs however if you find issues with the property and you wish to cancel your deal i would look into asking for concession for repairs. You'll be amaze how many lender would give you a credit when you present them with issues that they will have to probable have to address with future buyers anyway. Just a thought. Good Luck.
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There seems to me to be a gray area here. As an outside Realtor, stepping into a nest that two other Realtors do not seem to be dealing with, I'd have to carefully pull the strings apart and see what went wrong. Sorry you are having this problem.... more