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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Don't get caught between multiple foreclosure sales on the same property. Posted by Ward-CA- on March 02, 2002 at 2:06 PM In Reply to: House sold twice! posted by Sylvia on March 02, 2002 at 3:58 AM : Why isn't there a law that if a person buy a foreclosure house at auction there may be other liens on the property? How can a house that been bought by new owners at an auction be sold again without giving the chance to bring the current loans up to date? If a junior lien was bought, why can't new owner buy the senior lien also? Shouldn't new owner have the right to purchase it since they weren't the foreclosing party in the first place? Can there money be return if the property got sold at the senior auction? =•=•=•=•=•=•=•=•=•=•= Sylvia, there’s a presumption in almost every business that those who actively participate in it will equip themselves with the basics. The same goes for the foreclosure business. It’s a well known fact that frequently there’s more than one lien against real property. And logic dictates that if an owner is so broke that they can’t pay all of their financing, then they’re probably not going to pay on any of it. So it’s safe to assume that all their liens are delinquent and possibly in foreclosure. Your suspicions would be confirmed when you did your title record research on the property at the county recorder’s office. You’d become aware of all the liens against the property and know in advance exactly when each of the trust deeds was scheduled for its foreclosure auction. Your strategy would be to attend the first upcoming foreclosure sale, and if you succeeded in being the highest bidder, then exercise your Right of Reinstatement and cure the foreclosure on the senior lien before it went to sale. The money paid at a foreclosure sale goes first to the owner of the foreclosing lien. Any surplus remaining would go to the next junior lienholder. Hope this helps Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Why isn't there a law that if a person buy a foreclosure house at auction there may be other liens on the property? How can a house that been bought by new owners at an auction be sold again without giving the chance to bring the current loans up to date? If a junior lien was bought, why can't new owner buy the senior lien also? Shouldn't new owner have the right to purchase it since they weren't the foreclosing party in the first place? Can there money be return if the property got sold at the senior auction? : =•=•=•=•=•=•=•=•=•=•= : Sylvia, there’s a presumption in almost every business that those who actively participate in it will equip themselves with the basics. The same goes for the foreclosure business. It’s a well known fact that frequently there’s more than one lien against real property. And logic dictates that if an owner is so broke that they can’t pay all of their financing, then they’re probably not going to pay on any of it. So it’s safe to assume that all their liens are delinquent and possibly in foreclosure. : Your suspicions would be confirmed when you did your title record research on the property at the county recorder’s office. You’d become aware of all the liens against the property and know in advance exactly when each of the trust deeds was scheduled for its foreclosure auction. : Your strategy would be to attend the first upcoming foreclosure sale, and if you succeeded in being the highest bidder, then exercise your Right of Reinstatement and cure the foreclosure on the senior lien before it went to sale. : The money paid at a foreclosure sale goes first to the owner of the foreclosing lien. Any surplus remaining would go to the next junior lienholder. : Hope this helps Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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