Foreclosure University Forum

Jr. Lienholder Forecloses w/out Sr. Knowing

by alisad, Wednesday, February 25, 2009, 16:31 (3741 days ago) @ foreclosureuniversity

� � � It is very possible for the 2nd lien to foreclose on a property.
� The
� � only
� � � thing is that they will be responsible for the full payoff of the
� � senior
� � � lien. They probably evaluated the property and felt like the
� property
� � was
� � � worth a lot more than what is owed to the senior lien. Taxes
� liens
� � have
� � � been paid off on many properties I dealt with by Mortgagees
� simply
� � because
� � � Taxes are senior to mortgage liens.
� � �
� �
� � � Sincerely
� � � John Lee
� �
� � Thank you for the reply. I do have a couple of questions if you know
� the
� � law in California. If the jr. lienholder is the only bidder at the
� � auction, don't they have to at least bid what is owed to them. The
� Jr.
� � bid only $20k and they are owed 85k and they have had NO contact with
� the
� � Sr. nor any attempt to payoff the Sr. or come to an agreement with
� them as
� � to a payoff amount. They have now served me with eviction papers and
� in
� � the court docs filed they state that they are the property owners.
� They
� � do not even mention in docs that they
� � are the jr. and there is a sr. lienholder. Any help will be
� appreciated
�
� While this is true, the 2nd lien holder can foreclose, they can also
� reinstate the 1st and take over the property subject to, that way they
� don't have to pay off the first. They have to continue to make payments
� to the first to keep it current or "pay off" the loan. Investors actually
� do this all the time so they don't have to come up with a ton of money.
� They are taking the risk by foreclosing in hopes someone will bid because
� they will get paid the full amount. If no one bids, then they continue to
� make payments to the first. And sometimes, like in your case, the first
� may not even know it's going to foreclosure. Then they will try to sell
� the property.

In court docs the 2nd states they are the prop. owner and do not even refer to the Sr. Secondly, does not the 2nd have to bid at least what is owed to them> They can't only bid $1 and own the property can they> They have not made payments to the first and I was demanded by the 2nd to pay them the 1st and 2nd mortgage. What if I continue to pay the 1st how can they be the owners of the property>


Complete thread:

 RSS Feed of thread

User Menu

Forum Search

 

Featured Product

foreclosure home study course
"The Investors Complete Foreclosure Home Study Course - Only $47"

Discover a Proven System for Buying Real Estate Foreclosures 30%, 40%, and 50% Below Market Value. Generate Huge Returns Using This Step-by-Step Foreclosure System.

Learn More - Click Here

Forum Statistics