Must a 2nd ALWAYS buy out the 1st to foreclose?

[pcn]

Is that just part of the process, always? If so, what is the advantage to a 2nd attempting to foreclose when the property value is less than the value of the first? What can they possibly gain if they will have to spend time and legal fees to end up with a home they will sell at a loss? Say the 2nd gets an appraisal that shows the value is higher than it really is. Do they do any verification? I ask this because several weeks ago there was a man taking pictures of our home, who when approached by a neighbor made mysterious comments about "If you only knew what was really going on". Now a month and a half later BOA sends a Notice of Intent to Accelerate. An appraisal from the street wouldnt how the water damage to the home or the leaking crawl space that our appraisal showed, so maybe they have a false sense of making a profit. If so, is there any way to convince BOA that it really is not in their interest to follow through?

[iv65536]

Something inside me says to just let BOA find out the hard way.

[justasking]

I have a similar situation with a bank trying to foreclose on a third position when the property is probably worth the first and second, at best.

My lawyer stated that basically they don't have to buy out the first and second, but this gives them the lien that has to be satisfied before the property can be sold. Of course, if the property is sold, the first (and second, in my case) gets their money first ... so this seems like a dumb thing to do on BoA's part, but banks don't seem to be making very intelligent decisions lately, IMHO.

HTHs

[iv65536]

Agreed. This seems to be in large part why the 2nd in my case seems to be in no hurry to foreclose.

[goingcrzy]

Is BOA also the servicer of the loan?

Most times their will be the investor (who owns the loan) and the servicing company (who handles payments/foreclosures)

Many of the servicing companies will go through the motion of foreclosing on the second just to collect the fees. (and scare you). Once the auction date is listed, they never seem to go through with it.

BUT - Since this is BOA, they may have no clue and just take the loss. They seem to be the most unorganized of the banks.

[notforsale]

My 2nd filed for judgement just like a credit card would. They planned only to add a lien against the property. Which seems stange as they already have a lien on the house. This avoids a foreclosure sale for them.

[pcn]

My 2nd filed for judgment just like a credit card would. They planned only to add a lien against the property. Which seems strange as they already have a lien on the house. This avoids a foreclosure sale for them.

Am I correct to assume that you haven't filed bk at this point then? I'd think if there had been a bk, the bank couldn't add a lien. Or am I way off?