Foreclosure And Liabilities
New guy has a question
My understanding is that if a property is auctioned off and all the needed lien holders where notified prior to the foreclosure, after the auction all liens are wiped out.
The money from the sale is then used to pay off the lien holders based on their priority, tax liens, senior mortgages, junior mortgages. In NY there is no redemption so only the IRS can step in if involved and willing to buy the property.
Given the above information, can someone please answer the following?
Why do I read about people buying junior liens and worrying about senior liens?
Did they buy them from the holder before any foreclosure?
Thanks in advance
In your scenario did the people by the trustee’s deed from the 2nd prior to any foreclosure? I am assuming yes.
So the benefit of buying the trustee’s deed from the 2nd is getting control of a property where the market value is greater than what is owed to 2nd and 1st. ?
they bought it 2 wks before the trustee sale on the 1st, and then day of the auction the LLC that bought it declared bk to buy extra time to close the sale.
Congratulations! I hope this forum was helpful through the endeavor.