Buying At Auction W/several Liens
I'm looking at buying at the auction. I have heard both ways on what liens are wiped out.
My understanding is any lien below the foreclosing lien is wiped out at the auction. But a lien that is ahead of the foreclosure lien is still my responsibility. Is this right?
Ex:
1st lien of 30k
2nd lien of 20k
3rd lien of 10k
2nd forecloses
buy at auction for 10k
1st lien is still active
2nd receives only 10k
3rd receives didly
What about property tax liens? What place are they considered? I have heard they supercede all liens?
I am in Florida as well and agree with everything DS said. However, I have had experience with past due water and electric bills. I have bought a few houses where the past owners did not pay either and to reconnect service you do have to pay those off. They are not usually very large, but with penalties, months of no paying, etc, i had to pay off a seven hundred dolar electric bill to have the electric turned on for my contractors. Also, in florida, you need to notify a mortgage holder who has a mortgage that is subsequent to yours. If you buy the first mortgage, and their is a second mortgage on the property, you do not have to pay it, but if you dont give notice to the second mortgage holder, they can come back and charge a thousand dollars as a penalty, or will take you to court. They cant win anything from you in court, but it will tie the property up for a certain amount of time and if you have buyers ready to go, it may hinder a sell. Keep it in mind, Ive had a couple closings fowled up at the last second, but no real big problems. The court is suppose to notify the second mortgage holder, but the notification is not always follwoed through.[ Edited by robkent2578 on Date 11/24/2004 ]
Idaho permits non-judicial foreclosure through an owner of sale clause in a deed of trust. If the borrower goes into default, the property may be sold by giving the borrower the proper notice.
The foreclosure notice must describe the nature of the default and the lender’s election to sell. The notice must set the date, time, place and basis for the sale.
The notice must be recorded.
The notice must be sent to anyone who requests a copy. The borrower must be given a copy at least 120 days in advance of the sale. Lessees or occupants must also be given the same notice as the borrower.
The notice must be published in the newspapers in the county where the property is located at least once a week for four consecutive weeks. The final ad must be run not less that 30 days in advance of the foreclosure. The published notice must contact a legal description of the property, its street address and the name and phone number of someone who can give directions.
Within 15 days of the date of recording of the notice of default, a junior lien holder or the borrower can pay the amount due on the loan and a trustee’s fee if the default is cured prior to the first newspaper publication of the sale.
The foreclosure sale must take place at the time called for in the notice, unless the sale is postponed. The sale can be postponed by the lender to a new time and place, but not later than 30 days after the original date. Multiple postponements are possible. The proceeds of the sale must go first to the lender, then to any interior recorded lien holders, then to the borrower.
The lender can sue the borrower is a separate lawsuit for a deficiency within three months following the sale for whatever sum remains unpaid on the mortgage, provided the balance exceeds the fair market value (or such reasonable value as the court finds) of the property at the time of the foreclosure.
The real estate may be redeemed by the borrower up to one year after the sale if more than 20 acres are involved, or six months for land parcels of less than 20 acres.
As several others have stated be cautious of priority liens as if you purchase the subject property you will assume the debt as well.
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hi my name is Ryan. i am a member of CTREIA. if you were at the last meeting i spoke about the "murder shortsale" i just completed. anyway, i have the john beck course. i dont know how much about it though. feel free to approach my at the next meeting or respond back here, Ryan, Phone, (822)(8172)
hi my name is Ryan. i am a member of CTREIA. if you were at the last meeting i spoke about the "murder shortsale" i just completed. anyway, i have the john beck course. i dont know how much about it though. feel free to approach my at the next meeting or respond back here, Ryan, Phone, (822)(8172)
hi my name is Ryan. i am a member of CTREIA. if you were at the last meeting i spoke about the "murder shortsale" i just completed. anyway, i have the john beck course. i dont know how much about it though. feel free to approach my at the next meeting or respond back here, Ryan, Phone, (822)(8172)
I did hear you speak on your "murder house" sale. There were so many people there I did not get a chance to speak with you. I'll look into the John Beck course.