Bob owns a property worth $100,000
Bob owes the bank a 1st mortgage $60,000 @ $500/ MO P&I
Bob is ten payments behind on his mortgage ($5,000 in the rear)
Bob owes Sam a 2nd mortgage $10,000 @ $100/ MO
Bob has $30,000 in equity in his house Sam the knowledgeable 2nd mortgage holder is foreclosing
The property goes to a public auction the bid is open by the courts for what is owed to Sam plus all fees.
The opening bid is $20,000 the highest bidder will own the property, the proceeds of the sale will be used to satisfy
the court cost plus attorney fees, and the 2nd mortgage holder Sam. Other lien holders if any will be paid second, and the
remaining proceeds if any will go to Bob the owner.
The high bidder now must make the first mortgage payments.
Sue , an investor bids$20,000 and won the bid, the courts ,Sam and all fees are paid in full.
Bob the owner didn't receive any cash from the sale of his house, and Bob will be evicted from his home.
Sam gets all of his money after the auction of Bob's home.
Sue is now responsible for the first mortgage payments she owns a home with $20,000 dollars in equity her investment
of $20,000 dollars is safe, she can sell the home, and make a profit.
If Bob the owner had the foreclosure solving knowledge in our book he would not have lost his home at auction in
fact he would not have been in foreclosure if he had this knowledge.