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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Sale to lender is no different than any othe buyer...r Posted by Ward-CA- on November 11, 2003 at 2:45 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, Technically, there's always a bid at a Trustee's Sale. The opening bid is the lender's bid. If no one tops it then it's the highest bid and the lender receives the Trustee's Deed. So, since the Trustee's Sale actually took place, yes the junior would be wiped off title just as if the title went to an outside 3rd party. Also, that means that IRS can exercise it's Right of Redemption for the 120 day period after the sale. Hope this helps. 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, : Technically, there's always a bid at a Trustee's Sale. The opening bid is the lender's bid. If no one tops it then it's the highest bid and the lender receives the Trustee's Deed. : So, since the Trustee's Sale actually took place, yes the junior would be wiped off title just as if the title went to an outside 3rd party. : Also, that means that IRS can exercise it's Right of Redemption for the 120 day period after the sale. : 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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