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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Another helping of help. Posted by Ward-CA- on September 01, 2001 at 8:50 AM In Reply to: Re: Help In Texas posted by Steve H. on September 01, 2001 at 7:23 AM : Someone else posted that the second and third might bid up to the value of their interest in the property, plus that of senior liens. You seem to think that they wouldn't bid, which was what I was figuring, especially considering that the market is so depressed here. Any additional comments on the second or third bidding? : One final question. I did not find any evidence that the second had been released, but the trustee in bankruptcy said they only two loans listed on the home - $430 and $143. If that were true, is it more likely the second would bid? : Steve =•=•=•=•=•=•=•=•=•=•=•=•= Steve, is the $143K second trust deed one that’s been put in place by a regular lender? Or is the lender a private party? The reason is that a private party junior will rarely bid at the trustee’s sale of a senior. If it’s overbid by a junior lienor it’ll be because the junior beneficiary is a seasoned, institutional lender with some moxie. And in this instance, where the 1st is so large, I would bet that only an outside bidder would be doing the bidding. And now that you mention that your local real estate market is depressed please forget my earlier comments regarding amateur competition. They’re a factor only in a real estate market dominated by sellers, such as our current San Diego market. I hope you avail yourself of your county recorder’s records and research this deal there to determine with some certainty that the liens against this property are all that are against the title and that they’re in the priority order you currently think they are. My guess is that the 2nd of $143K will be the one that initiates the foreclosure on this property. I say that for two reasons. First, the 2nd will want to get its foreclosure going earlier than the 1st’s so they won’t have to cure the 1st’s foreclosure in order to ensure that their 2nd lien goes to foreclosure sale first. Second, the bankruptcy court historically allows the junior lienors, like the 2nd in this case, their relief from the automatic stay of bankruptcy, to initiate and conclude their foreclosure long before the Court will grant relief to any 1st lender. Why? Because the 1st isn’t being threatened with getting squeezed out of their protective equity from the ever growing amount of interest owed to the 1st lender—but the junior lien positions are. Hope this helps. Follow Ups: Re: Another helping of help. Steve H. 1:22 PM, 09/01/01 (5) Re: Now let's see... Ward-CA- 4:53 PM, 09/02/01 (4) Porucznik Borewiczmnb Porucznik Borewiczmnb 5:09 PM, 07/25/06 (0) Re: Now let's see... Steve H. 7:38 PM, 09/02/01 (2) Re: Fingers crossed... Ward-CA- 8:10 PM, 09/02/01 (1) Re: Fingers crossed... Steve H. 10:55 AM, 09/04/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Someone else posted that the second and third might bid up to the value of their interest in the property, plus that of senior liens. You seem to think that they wouldn't bid, which was what I was figuring, especially considering that the market is so depressed here. Any additional comments on the second or third bidding? : : One final question. I did not find any evidence that the second had been released, but the trustee in bankruptcy said they only two loans listed on the home - $430 and $143. If that were true, is it more likely the second would bid? : : Steve : =•=•=•=•=•=•=•=•=•=•=•=•= : Steve, is the $143K second trust deed one that’s been put in place by a regular lender? Or is the lender a private party? The reason is that a private party junior will rarely bid at the trustee’s sale of a senior. If it’s overbid by a junior lienor it’ll be because the junior beneficiary is a seasoned, institutional lender with some moxie. : And in this instance, where the 1st is so large, I would bet that only an outside bidder would be doing the bidding. And now that you mention that your local real estate market is depressed please forget my earlier comments regarding amateur competition. They’re a factor only in a real estate market dominated by sellers, such as our current San Diego market. : I hope you avail yourself of your county recorder’s records and research this deal there to determine with some certainty that the liens against this property are all that are against the title and that they’re in the priority order you currently think they are. : My guess is that the 2nd of $143K will be the one that initiates the foreclosure on this property. I say that for two reasons. First, the 2nd will want to get its foreclosure going earlier than the 1st’s so they won’t have to cure the 1st’s foreclosure in order to ensure that their 2nd lien goes to foreclosure sale first. Second, the bankruptcy court historically allows the junior lienors, like the 2nd in this case, their relief from the automatic stay of bankruptcy, to initiate and conclude their foreclosure long before the Court will grant relief to any 1st lender. Why? Because the 1st isn’t being threatened with getting squeezed out of their protective equity from the ever growing amount of interest owed to the 1st lender—but the junior lien positions are. : : 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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