InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Status of junior bene's after property REO's? Posted by Travis-CA on November 11, 2003 at 1:33 PM In Reply to: Status of junior bene's after property REO's? posted by Larry Van Valkenburgh on November 10, 2003 at 6:32 PM : If a property comes up for sale at a Trustee Sale and no one bids on the property it goes back to the foreclosing beneficiary as an REO (or OREO, take your pick). : My question is do the junior beneficiaries get wiped out as they would have had the property been sold to a 3rd-party? : Also, does the IRS still get to exercise its option to seize the property to satisfy a tax lien? If the IRS can do this, does that mean they pay the lender what they were owed at the sale? : Thanks, Larry Larry, The lender starts the bidding with their opening bid, if no outside bidders raise the bid, then the lender is the successfull bidder and wins the auction. The lender is not "taking the property back" because they never owned it to begin with, they are just the successfull bidder and receive title via a trustee's deed just as you or I would had we been the successfull bidder. Now that the lender has received title via a trustee's deed, all junior liens are wiped off title to the property including IRS who can still exercise their ROR. Travis Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : If a property comes up for sale at a Trustee Sale and no one bids on the property it goes back to the foreclosing beneficiary as an REO (or OREO, take your pick). : : My question is do the junior beneficiaries get wiped out as they would have had the property been sold to a 3rd-party? : : Also, does the IRS still get to exercise its option to seize the property to satisfy a tax lien? If the IRS can do this, does that mean they pay the lender what they were owed at the sale? : : Thanks, Larry : Larry, : The lender starts the bidding with their opening bid, if no outside bidders raise the bid, then the lender is the successfull bidder and wins the auction. The lender is not "taking the property back" because they never owned it to begin with, they are just the successfull bidder and receive title via a trustee's deed just as you or I would had we been the successfull bidder. Now that the lender has received title via a trustee's deed, all junior liens are wiped off title to the property including IRS who can still exercise their ROR. : Travis 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455