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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Purchase of second mortgage in error Posted by JC-CA on July 29, 2006 at 11:02 PM In Reply to: Re: Purchase of second mortgage in error posted by Jerry - Ca. on July 21, 2006 at 4:00 PM The 2nd lien position was extinguished during the trustee sale. It is not secured by the property any more. You now own the house. Josh : : I'm one of three investors who formed an Oregon LLC and unwisely purchased at auction in Riverside County a second trust deed for $96,000. We thought, of course, it was a first trust deed. Please don't tell us how stupid we were. We need to know how to proceed from here. The house is in Temecula with a value of $360,000 to $375,000 and has people in it that haven't made a payment since July, 2005. The first mortgage through Aug. 20th has a payoff of $365,123. First question: Is there any way to salvage some of our $96,000? Second question: Would it be a mistake to record the Trustee's Deed for fear of other legal problems in the event we cannot salvage any of our money? : ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ : Guy: : All trustee sales are final! Your LLC now owns the note and my opinion is absolutely : record your trustee deed to give constructive notice that there is an encumberance vs. : the property. : You can always sell the note at a substantial discout of face value ... but highly : unlikey to sell with no equity based on your "numbers". I also would like to know : where you got your current value of the property? If an institutional lender loaned : $96,000. as a second .... there had to be value to warrant the loan (LTV). Properties : values in S.D. county and the Temecula area have NOT dropped significantly in years! : Youn can always evict the hold-over owner and rent the place in hopes of future : appreciation, too! : Jerry Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : The 2nd lien position was extinguished during the trustee sale. It is not secured by the property any more. You now own the house. : Josh : : : : I'm one of three investors who formed an Oregon LLC and unwisely purchased at auction in Riverside County a second trust deed for $96,000. We thought, of course, it was a first trust deed. Please don't tell us how stupid we were. We need to know how to proceed from here. The house is in Temecula with a value of $360,000 to $375,000 and has people in it that haven't made a payment since July, 2005. The first mortgage through Aug. 20th has a payoff of $365,123. First question: Is there any way to salvage some of our $96,000? Second question: Would it be a mistake to record the Trustee's Deed for fear of other legal problems in the event we cannot salvage any of our money? : : ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ : : Guy: : : All trustee sales are final! Your LLC now owns the note and my opinion is absolutely : : record your trustee deed to give constructive notice that there is an encumberance vs. : : the property. : : You can always sell the note at a substantial discout of face value ... but highly : : unlikey to sell with no equity based on your "numbers". I also would like to know : : where you got your current value of the property? If an institutional lender loaned : : $96,000. as a second .... there had to be value to warrant the loan (LTV). Properties : : values in S.D. county and the Temecula area have NOT dropped significantly in years! : : Youn can always evict the hold-over owner and rent the place in hopes of future : : appreciation, too! : : Jerry 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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