Foreclosure University
Your Online Real Estate Investing Resource
by Jarad 2 Comments
Question: I am the third lien holder of a house. The second holder is foreclosing on the house. will I be able to get what is owed me after foreclosure sale?
Answer: -Based on Lien Priority those senior to you always get paid first. So in order for you to get paid, the bid amount must be enough to pay off any senior lien holders. Once they are paid off, you will be next in line to get paid. So it really depends on the bid amount whether you’ll get paid or not.
Question: If I hold the first and the second is foreclosing
what can I do to ensure that I will still be paid?
Answer: -Lien holders get paid based upon lien priority and there are a few “rules”. Lien priority is based upon when things are recorded. So if you are in 1st position, you will get paid before someone in 2nd, 3rd, etc. So if they 2nd forecloses and no one bids, they have to pay off all senior lien holders. Property taxes are the only exception, they always get seniority over everything no matter when they are recorded.