Second on a home went to auction and went back to lender for 275,000.00 - the first is not in foreclosure.

Asked by Mj, Sacramento, CA Mon Sep 8, 2008

The owner of the home would like to sell the house for what is owed on the first. Can you offer the lender of the second who just foreclosed a discounted amount on the 275,000.00 to get them to release it so the sale can proceed?

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Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Tue Sep 9, 2008

I suggest you check with an attorney on this matter. According to my understanding of the foreclosure process, the "owner of the home" is now the lender on the 2nd. You would need to negotiate directly with them to purchase the home. The old owner no longer has the right to sell the house.
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Cameron Piper, Agent, Forest Lake, MN
Tue Sep 9, 2008

You can always offer them a settlement of the debt but what you are outlining doesn't make sense to me. If a secondary lien forced a foreclosure and subsequently bought it at auction, the first mortgage should be out of the picture having been paid off at the foreclosure sale through the proceeds of what was paid at the auction. Foreclosure laws are state specific so it may be different in California, but it still wouldn't make sense to me that the first mortgage would still be involved after the sale.

The seller shouldn't care less what the house sells for if they aren't going to make any money on the sale. You goal should be to find out who bought it and negotiate with them. Chances are not likely that they will sell it to you until after the redemption period (if you have one in CA), but you can always try. Get an agent who knows what they are talking about when it comes to Foreclosures and Short Sales in California and have them represent you in the transaction. Their help will be the difference between getting the house and wasting time on it.

Cameron Piper
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