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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Mistake in giving notice and subsequent remedy... Posted by Mark H. on May 03, 2008 at 3:40 AM In Reply to: Re: Mistake in giving notice and subsequent remedy... posted by Ward, on May 03, 2008 at 3:38 AM Whoops, sorry for the mistitle of my reply to ward, it was not from Ward but too him. : Ward, : Thanks - that helps. Now I am wondering, in your experience how rare (or common) is it that the trustee fails to notify the Jr. Lien holder - especially the IRS? : : Mark, : : The failure of trustee in giving a junior lienor notice of the impending foreclosure of their senior lien will result in the non-noticed lien remaining against the title of the property after the trustee’s sale. : : The notice that’s required is sending the junior lienor, by both regular mail and registered or certified mail, a copy of the Notice of Default and later on a copy of the Notice of Trustee’s Sale. : : If the foreclosing trustee becomes aware of their oversight prior to distributing the winning bid and bid overage, they will just cancel the sale for failure of proper notice and re-record a new Notice of Trustee's Sale that's sent to ALL entitled junior lienors...and then proceed with their Trustee's Sale once more. : : -----------Ward : : =========== : : : : Recently I have noted a few properities with IRS Leins. Of course, if the Lein was filed after the foreclosuing deed of trust and the property is foreclosed upon and the IRS is notified, then the IRS has the option of taking the property back in 120 days after trustee sale. And the buyer will be repaid. : : HOWEVER, what if the trustee failed to notify the IRS prior to the foreclosure sale? Will the property merely retain the lein OR will the IRS take the property back from the buyer and NOT reimburse the buyer? : : And how hard is it to get the trustee to verify if they (or if they did not)send the required pre-forclosure letter to the IRS? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Whoops, sorry for the mistitle of my reply to ward, it was not from Ward but too him. : : : Ward, : : Thanks - that helps. Now I am wondering, in your experience how rare (or common) is it that the trustee fails to notify the Jr. Lien holder - especially the IRS? : : : : Mark, : : : The failure of trustee in giving a junior lienor notice of the impending foreclosure of their senior lien will result in the non-noticed lien remaining against the title of the property after the trustee’s sale. : : : The notice that’s required is sending the junior lienor, by both regular mail and registered or certified mail, a copy of the Notice of Default and later on a copy of the Notice of Trustee’s Sale. : : : If the foreclosing trustee becomes aware of their oversight prior to distributing the winning bid and bid overage, they will just cancel the sale for failure of proper notice and re-record a new Notice of Trustee's Sale that's sent to ALL entitled junior lienors...and then proceed with their Trustee's Sale once more. : : : -----------Ward : : : =========== : : : : : : Recently I have noted a few properities with IRS Leins. Of course, if the Lein was filed after the foreclosuing deed of trust and the property is foreclosed upon and the IRS is notified, then the IRS has the option of taking the property back in 120 days after trustee sale. And the buyer will be repaid. : : : HOWEVER, what if the trustee failed to notify the IRS prior to the foreclosure sale? Will the property merely retain the lein OR will the IRS take the property back from the buyer and NOT reimburse the buyer? : : : And how hard is it to get the trustee to verify if they (or if they did not)send the required pre-forclosure letter to the IRS? [ 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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