InnoVest's Foreclosure Forum
Ward takes the stairs.

InnoVest Resource Management's

Foreclosure Forum

Home

Discussion Board

"Hands-On" Training

Title Holding Trust

Annual Reunion

Speaking Schedule

Store

Foreclosure Fundamentals

Code References

Recent Legislation

50 State Foreclosure Basics

Foreclosure Glossary

Foreclosure Statistics

75+ Yrs Interest Rates

Fillable Forms

Archived Articles

Dingbat Retirement Plan

Links

Booklist

Contact / Map | Priceline Tips

About Us

Home

 

Innovest Resource Management BBB Business Review

Who can share in a foreclosure overbid amount...

March 11, 2016 09:05AM
Mattie,


According to California Civil Code § 2924 any surplus bid amount that occurs at a Trustee’s Sale goes downward to the next junior lienor in priority. If there still remains a surplus after that junior lienor is paid in full then it continues down in a daisy chain fashion until the overbid is finally exhausted.

In the event that there is an overbid balance, but no junior lienor to pay, then that money will go, in its entirety, to the property owner who was on title at the time of the Trustee’s Sale.

No overbid amount ever goes to liens that are senior in priority to the foreclosing lien. Such proceeds always go to the junior lienors, and possibly even the foreclosed owner, who is the most subordinate junior stakeholders of any real property interest.

Therefore, no overbid would ever go to pay off property taxes since they are the most senior lien.

Whether or not a recorded abstract of judgment would ever share in an overbid distribution depends upon its priority position amongst other lien-holders that are junior to the foreclosing lien. In the unlikely event that an abstract of judgment recorded senior to the foreclosing lien then it would not share in any overbid distribution.

--------------------------Ward

==============================
Subject Author Views Posted

Who gets the money that is over the minimum bid?

Mattie 831 March 10, 2016 08:20PM

Who can share in a foreclosure overbid amount...

Ward-CA 782 March 11, 2016 09:05AM



Sorry, only registered users may post in this forum.

Click here to login

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2017, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455