Georgia Foreclosure Question - Second purchased and what is resp for 1st?
I purchase at the county court house steps in Georgia a second mortage
that was being foreclosed. I am being told that the first is my
responsibility since I purchased the second. I am currently not in a
position to pay off the first, so what are my options?
Can I start paying on the original owners 1st mortgage directly to keep
it from going into foreclosure? How long can I do this and can the
original owners get this property back from me if I keep it out of
foreclosure by paying on their loan (this would keep me from having to
refinance it and incurring all that is related to mortgage closing
costs)? If I use this technique, can the original owners somehow
reclaim a stake in this property without my authorization?
And if the first goes into foreclosure, is it foreclosed on myself or
the original owner? If I watch the paper to see if it is being
foreclosed on, can I then pay off the note and the property be mine?
In this case, how much can one expect to pay in additional fees related
to the foreclosure process?
If the first is foreclosed on, do I loose everything that I put into
the second with no rights to the property, or do I have partial
ownership in the property and it is now a title nightmare? I really
can't afford to loose what I put into the purchase of the second
mortgage.
Any advise that is valid for the state of Georgia would greatly be
appreciated.
Question: I purchase at the county court house steps in Georgia a second
mortage that was being foreclosed. I am being told that the first
is my responsibility since I purchased the second. I am currently
not in a position to pay off the first, so what are my options?
Answer: You might be able to reinstate the first and then keep monthly payments
current.
Question: Can I start paying on the original owners 1st mortgage directly to
keep it from going into foreclosure?
Answer: It's probably that you didn't buy the mortgage, but you bought the
house from the holder of the second mortgage, subject to the first. As
the current homeowner you probably have the right to pay the first
directly.
Question: How long can I do this and can the original owners get this property
back from me if I keep it out of foreclosure by paying on their loan
(this would keep me from having to refinance it and incurring all
that is related to mortgage closing costs)? If I use this technique,
can the original owners somehow reclaim a stake in this property
without my authorization?
Answer: You should talk to a local real estate lawyer, because this could get
complicated. In California the rule is that if it's foreclosure of a
mortgage the prior owner can buy it back for all you paid out within
one year. But if it's a foreclosure of a deed of trust there is no
right to redeem. I don't know what the GA rules are.
Question: And if the first goes into foreclosure, is it foreclosed on myself
or the original owner?
Answer: No, it's foreclosed on the house.
Question: If I watch the paper to see if it is being
foreclosed on, can I then pay off the note and the property be
mine? In this case, how much can one expect to pay in additional
fees related to the foreclosure process?
Answer : The holder of the first will have to notify you if they want to
foreclose.
Question: If the first is foreclosed on, do I loose everything that I put
into the second with no rights to the property, or do I have
partial ownership in the property and it is now a title nightmare?
Answer: If the first forecloses, the house gets sold and all your rights
disappear.
Question: I really can't afford to loose what I put into the purchase of
the second mortgage.
Answer: You did something very risky. But it could turn out well if you can
afford to keep up the payments on the first. To be safe go see a local
real estate lawyer. Nobody here will be able to give you as good
information because there's no way we can know all the relevant facts.