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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: foreclosure priority Posted by DOND on June 03, 2009 at 8:36 AM In Reply to: Re: foreclosure priority posted by gc on June 03, 2009 at 6:25 AM : ok, but in this case the senior is foreclosing, however the 2nd had the NOD recorded first. Is that a problem for the senior? : Thanks in advance. : GC : : Can a first trust deed do a foreclosure when HOA recorded their NOD first? : : : gC : : Any lienholder can initiate a foreclosure of his lien at any time, without consulting with other lienholders. : : Once he does initiate foreclosure, however, he must notify all junior lienholders. : : Dond The senior isn't the least bit interested in a potential foreclosure on a junior lien. A foreclosure of a junior lien affects OWNERSHIP of the property. It doesn't matter who owns the property, the senior lien is still a senior lien. The senior lienholder still has the right to foreclose and acquire title free of all junior liens. These two examples may help. #1 Junior lien forecloses at 9:00 a.m. and acquires title, then senior lien forecloses at 9:01 and acquires title. The junior lienholder owned the property for only 1 minute, and now it belongs to the former senior lienholder. #2 Senior lien forecloses at 9:00 a.m. and acquires title. The junior lien is wiped out, even though is is scheduled to be auctioned at 9:01 a.m. Dond Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : ok, but in this case the senior is foreclosing, however the 2nd had the NOD recorded first. Is that a problem for the senior? : : Thanks in advance. : : GC : : : Can a first trust deed do a foreclosure when HOA recorded their NOD first? : : : : gC : : : Any lienholder can initiate a foreclosure of his lien at any time, without consulting with other lienholders. : : : Once he does initiate foreclosure, however, he must notify all junior lienholders. : : : Dond : The senior isn't the least bit interested in a potential foreclosure on a junior lien. : A foreclosure of a junior lien affects OWNERSHIP of the property. It doesn't matter who owns the property, the senior lien is still a senior lien. : The senior lienholder still has the right to foreclose and acquire title free of all junior liens. : : These two examples may help. : : #1 Junior lien forecloses at 9:00 a.m. and acquires title, then senior lien forecloses at 9:01 and acquires title. The junior lienholder owned the property for only 1 minute, and now it belongs to the former senior lienholder. : #2 Senior lien forecloses at 9:00 a.m. and acquires title. The junior lien is wiped out, even though is is scheduled to be auctioned at 9:01 a.m. : Dond [ 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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