buying second mortgage at foreclosure sale

[acmb05]

What is the name of your state? Tennessee. Ok here is the deal, I am looking at going to the public auction at our local courthouse to make a bid on a home that is up for foreclosure sale. The price is rather cheap because this is the second of two mortgages. The homeowner has an 80-20 ARM and has defaulted on the 20% loan. If I make a successful bid on this property then would I own the property or would the owners still be abale to live there but have to make payments to me? Would I have to evict them and if so what happens with the other mortgage that they have? If they stop paying on the first mortgage would I then have to go back and make a bid on that one also?

 

[Ohiogal]

The other mortgage takes priority and controls. You would only get your money after the first mortgage was paid. This does not appear to be a good deal for you. Not to mention the first mortgagor will be there bidding as well.

 

[acmb05]

The other mortgage takes priority and controls. You would only get your money after the first mortgage was paid. This does not appear to be a good deal for you. Not to mention the first mortgagor will be there bidding as well.

Thank you Ohiogirl. The same bank owns both mortgages which is why I was wondering what would happen with this. Looks like I will be looking at a different home to buy.