My house is valued approx. at 230,000 and I owe 263,000. There is a house down the street up for auction starting at 25,000. My question is if there is anyway I can get a second mortgage approval amount so that I can make a bid at the auction and if (big if) I were to win the house at a bargin price (say 100,000), is there a way I can attempt to sell my current house and have the remaining owed (lets say I get a good sale price of 220,000, leaving me with 43,000 in the hole) and add that to the new mortgage of the new house (100,000 + 43,000 = 143,000). That would mean I get an equal valued house, but only owe 143,000 versus 263,000 if that makes since.
1 Answer from Attorneys
As the saying goes, "If it sounds too good to be true it is..." If it was as easy as you postulate to make a hundred thousand dollars don't you think everyone would be doing it? First, you are not getting a second mortgage in this environment when your home is not worth what you currently owe. Second, any real auction of a house is going to have to pay someone else what is owed on that house or the person who is owed the money will take the house. Third, there are at least three or four more reasons why your plan will not work, but surely you know that?