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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Recourse on second TD Posted by Dond on March 12, 2010 at 12:03 AM In Reply to: Recourse on second TD posted by Stuart on March 11, 2010 at 7:56 PM : Purchased a property a year back for a friend who was losing it. Had a first and a second. When I bought it, for me, and every other third party, the second was wiped. Former owner is trying to get financing to buy it back. Title company is saying that the second will remain a lien against the property, elsewise they will not insure. : The first is a non-recourse and gone, but the second continues to report to credit agencies, and has presented the above problem. : Anyone have insight into what the law actually is with respect to seconds and the ability of the second to continue to collect and cloud title? I think the title company is right. I remember from my first course in Principles of Real Estate that if you lose a property at a trustee sale due to a foreclosure of a senior lien, and later re-acquire the same property, any junior liens that were wiped off title for the foreclosure buyer will re-attach to the title for you, the original owner. Those former junior liens would now be older in time and therefore senior to any new financing. Dond Follow Ups: Re: Recourse on second TD Stuart 7:01 PM, 03/12/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Purchased a property a year back for a friend who was losing it. Had a first and a second. When I bought it, for me, and every other third party, the second was wiped. Former owner is trying to get financing to buy it back. Title company is saying that the second will remain a lien against the property, elsewise they will not insure. : : The first is a non-recourse and gone, but the second continues to report to credit agencies, and has presented the above problem. : : Anyone have insight into what the law actually is with respect to seconds and the ability of the second to continue to collect and cloud title? : I think the title company is right. I remember from my first course in Principles of Real Estate that if you lose a property at a trustee sale due to a foreclosure of a senior lien, and later re-acquire the same property, any junior liens that were wiped off title for the foreclosure buyer will re-attach to the title for you, the original owner. : Those former junior liens would now be older in time and therefore senior to any new financing. : 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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