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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] The answer is... Posted by Ward-CA- on March 15, 2004 at 9:36 PM In Reply to: Trustee Sale Survivors posted by steve on March 15, 2004 at 0:46 AM : I am looking at a piece of property that will be at the trustee sale. Title Search shows that the property has a 1st, 2nd, State tax lien, and an attachement. : 1st and 2nd are ordinary. : The State Tax Lien is from the Employment Development Dept (EDD) while the owner had a business employing contractors. The EDD apparently stated that he owe some FICA and Disability Taxes. The owner disagreed and now there is a lien. : The Attachement is a judgment against the owner who failed to pay the lease on his business building when he owned the business. The judgment was first filed by the leasing company (or creditor). : The question is: : Will these emcumbrances survive after the trustee's sale of the 1st trust deed? ==================== Steve, The answer is: All encumbrances and interests junior to the foreclosing 1st will be wiped off the title of the property. However, the wiped off general liens (the tax lien and the abstract of judgment) automatically remain as recorded liabilities against the debtor’s name. The junior 2nd trust deed or mortgage is wiped off title too, but the lender can sue the debtor in court on the non-secured note and get a judgment (which they can then record as a abstract of judgment). At that point it will attach to any other property the debtor owns or acquires in that county for life of the judgment. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am looking at a piece of property that will be at the trustee sale. Title Search shows that the property has a 1st, 2nd, State tax lien, and an attachement. : : 1st and 2nd are ordinary. : : The State Tax Lien is from the Employment Development Dept (EDD) while the owner had a business employing contractors. The EDD apparently stated that he owe some FICA and Disability Taxes. The owner disagreed and now there is a lien. : : The Attachement is a judgment against the owner who failed to pay the lease on his business building when he owned the business. The judgment was first filed by the leasing company (or creditor). : : The question is: : : Will these emcumbrances survive after the trustee's sale of the 1st trust deed? : ==================== : Steve, : The answer is: : All encumbrances and interests junior to the foreclosing 1st will be wiped off the title of the property. However, the wiped off general liens (the tax lien and the abstract of judgment) automatically remain as recorded liabilities against the debtor’s name. : The junior 2nd trust deed or mortgage is wiped off title too, but the lender can sue the debtor in court on the non-secured note and get a judgment (which they can then record as a abstract of judgment). At that point it will attach to any other property the debtor owns or acquires in that county for life of the judgment. : 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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