Originally Posted by
k3ifers
what class are you taking?
i took principles of real estate last spring.
Originally Posted by
cowanpp
Laws vary from jurisdiction to jurisdiction. I don't know if I get what you are saying. It sounds like you are talking about a second mortgage. If you are not the primary mortgage on the property, you will receive proceeds of the foreclosure sale, in order of priority, to the extent that the property is sold in excess above what the primary mortgage is for. The problem with the scenario you present is that it doesn't sound like the secondary mortgage has been filed, which could affect priority if a third or fourth mortgage has been put into place on the property and properly filed.
If you aren't thinking of a secondary mortgage scenario and you are the only mortgagor, then you would be the one doing the foreclosing and would receive all of the proceeds of the property to the extent that you had a mortgage on the property.
i get what your saying, and i am not talking about a morgage, more like a loan to the home owners. they already have 2 morgages on the property, its a rental. but the owners are behind on payments and are about to loose the property, so a friend is thinking of bailing them out and later buying the property from them..