Читать книгу Foreclosure Investing For Dummies - Ralph R. Roberts - Страница 50

I bought a first mortgage (senior lien) at the first foreclosure sale on a property for $25,000. Another investor bought the second mortgage (junior lien) for $25,000. Thinking that he had the property in the bag, he spent another $25,000 during the redemption period renovating the house, so now he had $50,000 invested in a property that was worth about $100,000.

That sounds like a good deal, but the investor made a huge mistake: He failed to pay off the senior lien, which I held. He could have redeemed the $25,000 senior lien that I held, sold the property for $100,000, and made a $25,000 profit, but he forgot to redeem the senior lien.

I took possession of the house and put it up for sale. The other investor called, understandably upset because he was convinced that the house was his. I had to explain that due to his oversight, the house was not in fact his, but mine.

The moral of the story is that if you buy a junior lien attempting to control the senior lien, be sure that you redeem that senior lien.