Belt Auction

2 Foreclosure auctions for 1 property?

A house in my neighbourhood is being foreclosed and auction notices were posted in local paper. I found 2 public notices for 2 auctions. The first auction is for the second mortgage, and the second auction, a week later, is for the first mortgage. How could that be? If I bid on the first auction ( second mortgage) and win would I own the house?

Public Comments

1. Because these people OVER leveraged their home and have defaulted on BOTH mortgages. When the first mortgage forecloses, it wipes out the second mortgage. So bidding on 2nd mortgage is VERY risky behavior.
2. Yes. If you are the winning bidder at the first auction, you get a deed. You would have 7 days to work out a payment schedule with the 1st lender. If you were not able to reach an agreement, you would have to pay off the 1st loan with cash. Then you would own the house free and clear.