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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Hypothetical answer... Posted by Ward-CA- on June 07, 2003 at 9:35 AM In Reply to: Sale of 1st vs. 2nd TD posted by Gary on June 05, 2003 at 10:02 PM : Ward: : This is a hypothetical question. A house has a 1st and a 2nd TD and the 1st forecloses and receives a winning bid of X dollars. The house next door is identical and also has a 1st and 2nd TD for the same amounts but it's the 2nd that goes to trustee sale. Does the winning bid on the house next door plus the remaining 1st TD come in less than the full trustee sale price on the first (X dollars)? I ask this because I saw a foreclosure listing that had the 1st TD going to sale 30 minutes after the 2nd TD goes to sale. What's the investor strategy here? : Gary =•=•=•=•=•=•=•=•=•=•= Gary, You should attend the sale of the 2nd trust deed, if it’s opening bid is low enough that you can make an acceptable profit, even after adding the unpaid balance of the 1st trust deed. Of course, you’d stop bidding on the 2nd position when it got to the level where your expected profit becomes too thin. At that point either go to the scheduled sale of the 1st or call your representative who'd already be there. If the sale opens, then bid on the foreclosing 1st until you reach your cut off point. Whoever winds up with the highest bid at the foreclosure sale of the 1st will wipe off title the highest bidder at the earlier foreclosure sale of the 2nd trust deed. To avoid such a situation (if you were the highest bidder at the sale of the 2nd) you'd have to reinstate or pay off the 1st before that sale gets under way 30 minutes later. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward: : : This is a hypothetical question. A house has a 1st and a 2nd TD and the 1st forecloses and receives a winning bid of X dollars. The house next door is identical and also has a 1st and 2nd TD for the same amounts but it's the 2nd that goes to trustee sale. Does the winning bid on the house next door plus the remaining 1st TD come in less than the full trustee sale price on the first (X dollars)? I ask this because I saw a foreclosure listing that had the 1st TD going to sale 30 minutes after the 2nd TD goes to sale. What's the investor strategy here? : : Gary : =•=•=•=•=•=•=•=•=•=•= : Gary, : You should attend the sale of the 2nd trust deed, if it’s opening bid is low enough that you can make an acceptable profit, even after adding the unpaid balance of the 1st trust deed. : Of course, you’d stop bidding on the 2nd position when it got to the level where your expected profit becomes too thin. : At that point either go to the scheduled sale of the 1st or call your representative who'd already be there. If the sale opens, then bid on the foreclosing 1st until you reach your cut off point. Whoever winds up with the highest bid at the foreclosure sale of the 1st will wipe off title the highest bidder at the earlier foreclosure sale of the 2nd trust deed. : To avoid such a situation (if you were the highest bidder at the sale of the 2nd) you'd have to reinstate or pay off the 1st before that sale gets under way 30 minutes later. : 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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