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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] The timing of recording relative to any other liens.. Posted by Ward-CA- on February 14, 2004 at 7:49 AM In Reply to: What defines a Senior lien? posted by Janice on February 14, 2004 at 4:04 AM : Hello All: : Wondering what determines if a lien is senior or junior? Is it which is bigger? Or, which came first? : Also, if I'm the successful bidder at a Trustee Sale (Arizona) which is based on a junior lien, will the senior lien holder contact me, or will I have to track them down? (...I worry because I've had little luck contacting loan holders prior to sales...) : Thanks so much for your expertise! : Janice ================ Janice, The priority of a lien is determined by the sequence of its recording against the title of real property. The first lien to record against the title of a free and clear property is senior to all subsequently recorded liens against the same property. And the 2nd to record is senior to all subsequently recorded liens, etc. For example, a lien in 2nd position is junior to a 1st lien-but senior to any lien that recorded against the property after the 2nd. The lien that is foreclosing will extinguish itself at its foreclosure auction and wipe off the title of the real property all liens and interests that are junior to it in priority...but leave intact all those liens and interest that are senior to it in priority. After you record your trustee’s deed you’ll need to contact the remaining senior lienors and cure their respective delinquencies. It’s easy to do in AZ since you can ask the foreclosing trustee who issued you your trustee’s deed for a copy of their Trustee’s Sale Guaranty (TSG) after the sale. The TSG lists, in sequential order, all recorded liens and interests against the title of the property. Any of those recorded prior to the lien that you paid off at your trustee’s sale are those you have to deal with after the sale. Have a copy of your recorded Trustee’s Deed ready to prove to any senior lienor that you are the new owner-by-foreclosure and thus entitled to bring their loans current. Hope this helps. Follow Ups: Good points . . . Joe Kaiser 9:42 AM, 02/15/04 (1) Re: Good points . . . Lyal 6:05 PM, 02/16/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hello All: : : Wondering what determines if a lien is senior or junior? Is it which is bigger? Or, which came first? : : Also, if I'm the successful bidder at a Trustee Sale (Arizona) which is based on a junior lien, will the senior lien holder contact me, or will I have to track them down? (...I worry because I've had little luck contacting loan holders prior to sales...) : : Thanks so much for your expertise! : : Janice : ================ : Janice, : The priority of a lien is determined by the sequence of its recording against the title of real property. The first lien to record against the title of a free and clear property is senior to all subsequently recorded liens against the same property. And the 2nd to record is senior to all subsequently recorded liens, etc. : For example, a lien in 2nd position is junior to a 1st lien-but senior to any lien that recorded against the property after the 2nd. : The lien that is foreclosing will extinguish itself at its foreclosure auction and wipe off the title of the real property all liens and interests that are junior to it in priority...but leave intact all those liens and interest that are senior to it in priority. : After you record your trustee’s deed you’ll need to contact the remaining senior lienors and cure their respective delinquencies. It’s easy to do in AZ since you can ask the foreclosing trustee who issued you your trustee’s deed for a copy of their Trustee’s Sale Guaranty (TSG) after the sale. : The TSG lists, in sequential order, all recorded liens and interests against the title of the property. Any of those recorded prior to the lien that you paid off at your trustee’s sale are those you have to deal with after the sale. : Have a copy of your recorded Trustee’s Deed ready to prove to any senior lienor that you are the new owner-by-foreclosure and thus entitled to bring their loans current. : 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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