>> he has no way to save it other than buying it
>> back at the sale. Does this sound correct?
Yes. Also, most of that $100k will go toward the fees associated with the foreclosure & the cost of selling the house (i.e. broker’s fees & other selling costs).
Are the 1st & 2nd original loans (i.e. taken out at the time of the purchase) or are they refinance loans ?
I’m asking b/c:
1. The lenders may have a hard time selling that house.
2. The lenders may have to sell the house at undermarket value.
3. Depending on how “conservative” your estimate is, there may not be enough $ from the sale to make the lenders “whole”. In this case, if the loans are refinance loans (recourse loans), the lenders can go after your brother.
