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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: All bases are covered Posted by Ward-CA- on November 30, 2001 at 7:34 PM In Reply to: Re: Are we on top of things? posted by Troy on November 30, 2001 at 10:37 AM : Also, just out of curiousity, what would happen if a trustor filed BK after you bought out a 2nd secured against his property and had already started your own foreclosure and filed a NOD. Would you simply sell the note and cut your losses? Or, would you wait and see if he follows through and gets his plan approved/declined? : Thanks for your help, and I hope things are going great for you. : Troy =?=?=?=?=?=?=?=?=?=?= Troy, why do you suppose there would be any losses? Generally when you go for a Junior Bene Buyout (JBB) you want to see that the trustor has a gross equity of at least $25K junior to your 2nd?s position. The specter of such a loss inhibits an owner from filing a bankruptcy early on. They will wait until they feel they have exhausted all their options and have run out of time?much closer to the trustee?s sale date of the 1st. So if the trustor doesn?t solve his problem by the time the Notice of Trustee?s Sale on the 1st is recorded then Al would exercise his right to reinstate that loan. He?d add that advance to his foreclosing 2nd and then, about 15 days away from his trustee?s sale, be stopped by the trustor?s bankruptcy filing. Al would then petition the Court for a relief from stay and, as a junior lien, get the relief and go to sale about 30 days later. If there were no bidders to top his opening bid he?d get title to the property rather than getting paid off. He?d capture all the equity from the discounted 2nd?s position downward and come out fine in an upbeat Seller?s market. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Also, just out of curiousity, what would happen if a trustor filed BK after you bought out a 2nd secured against his property and had already started your own foreclosure and filed a NOD. Would you simply sell the note and cut your losses? Or, would you wait and see if he follows through and gets his plan approved/declined? : : Thanks for your help, and I hope things are going great for you. : : Troy : =?=?=?=?=?=?=?=?=?=?= : Troy, why do you suppose there would be any losses? Generally when you go for a Junior Bene Buyout (JBB) you want to see that the trustor has a gross equity of at least $25K junior to your 2nd?s position. : The specter of such a loss inhibits an owner from filing a bankruptcy early on. They will wait until they feel they have exhausted all their options and have run out of time?much closer to the trustee?s sale date of the 1st. : So if the trustor doesn?t solve his problem by the time the Notice of Trustee?s Sale on the 1st is recorded then Al would exercise his right to reinstate that loan. He?d add that advance to his foreclosing 2nd and then, about 15 days away from his trustee?s sale, be stopped by the trustor?s bankruptcy filing. : Al would then petition the Court for a relief from stay and, as a junior lien, get the relief and go to sale about 30 days later. : If there were no bidders to top his opening bid he?d get title to the property rather than getting paid off. He?d capture all the equity from the discounted 2nd?s position downward and come out fine in an upbeat Seller?s market. 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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