I want to know what my options are on buying a house with a second mortgage?
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I want to know what my options are on buying a house with a second mortgage?
The person that owned the house died; he had a second mortgage on it. The first lender proceed with foreclosure and the house is now up for sheriff’s sale. The first lender indicated that it would be willing to make a deal with me. However, I want to know if I can buy the house without assuming the second mortgage or what my options are?
Asked on January 18, 2012 under Real Estate Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you are interested in purchasing a home with a first and second mortgage on it and the first is foreclosing on the property, I suggest that it is best for you to enter into a contract with the entity holding the first mortgage to purchase the property after it successfully forecloses on the property subject to assorted conditions to be approved by you such as a home inspection and loan qualification.
By allowing the first to foreclose on the property where it takes title to it, all junior liens are wiped out as a matter of law ensuring a much cleaner title for you. I suggest that you consult with a real estate attorney to assist you in your endeavor.
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