There is a house for pre-foreclosure and I am interested in buying for rehab and to live in. The first mortgage is around $200k and there is a second mortgage for around $100k. House is in very poor condition and needs to be gutted. In current condition the property is probably worth $270k. The house is scheduled for a foreclosure auctions in a few months. Is there anything I can do to get a leg up on purchasing it? I am a cash buyer. I've heard about people buying up the second mortgage at a discount to get an advantage in an auction. Is this a good strategy?
