Site menu:

A-105 The rest of the story

The home was sold, the new buyer moved in and the investor/developer/seller got cashed out.  This was done in 2003 or 2004 when such loans were much esier to come by.   The buyer wanted to build a garage and do some other improvements so at some point a second mortgage was placed on the property. 

Sometime after that the buyer needed some additional cash so a third mortgage from the original invester/developer was placed.  Then something happened.  I don't know the specifics, but it's usually a job loss, divorce, illness or some other life changing event that comes along and disrupts the family cash flow.  With three mortgages to pay the buy was soon behind and after a few months vacated the property.  

Time went by and foreclosure was started.  Again, I don't know all the details, but at some point the third mortgage holder had a conversation with the first lien holder and convinced them to let him buy the home back at a discount.  

I will be researching the details of this, but let it be a lesson in these difficult economic times.  If you think creatively there are always lots of ways to get things done.  Once persons (on institutions) problems become the next guys opportunity.