Foreclosure Auctions
I thought all liens were wiped out except for tax liens when you buy a property at a foreclosure auction?
Also, what are some other things to look out for at these auctions besides the redemption period and what you could find in a preliminary title report?
Great response thank you for your input! What about a loan in second position? Would that get wiped out through foreclosure?
The reason I ask is I am looking at this property about to be sold at an auction in CA and noticed there were 2 different TS (filing) numbers. I called the trustee and they told me there are two filings because there are two different loans and two different sales.
I thought that if there were two different loans that the 2nd loan would get wiped out????
Bargain King: Could you elaborate on you point #4.
Bargain gave you some solid info there especially about the 30 year search.
I recently bought a property at an auction. We had a title search done and all was well. When we went to sell after fixing upt he place we found it had a unpaid mortgage that was unfortunately in first position. We came out ok but that was sheer luck at that point.
Now I go to the courthouse and do the searches myself.
When there are 2 mortgages foreclosing, it depends on which one goes to auction first.
If the 1st mortgage goes to sale, the 2nd is wiped out.
If the 2nd mortgage goes to sale, the purchase is subject to the 1st mortgage.
[addsig]
Thanks for the great help!!
linlin: what can you find out at the courthouse??
Bargainking: what if they both have scheduled sales, what should I make of that?
At the courthouse here in Florida you can find out if there are any other mortgages, liens - types, date recorded, etc, the documents will tell which loan is foreclosing and under normal circumstances you will know if it is the first or second.
They also tell you if you will get possession after the sale or if the judge will have to issue a special writ and you can generally tell if you will need the Sheriff to help you take possession by the tone of any responses the plaintiff files
Thanks guys you have been so helpful!!
At what point in the foreclosure process does the final judgement get established?
When at the courthouse do I just talk to the clerk? Or who should I speak with there?
All I really need is the filing number right...then I can ask them what liens are on the property and to see the final judgement on those liens?
Sounds great, hopefully the same goes in CA as in FL.
Are there any other pertinant docs that they will allow you to see?
B]How do I know if the 2nd will be wiped out if I buy the 1st at an auction?[/B]
Thanks again guys!!
Thanks guys, I appreciate it.
I know california likes to play in its own sandbox and had a feeling that the clerks wouldnt be very helpful, but was unaware that there was computers you could research on. Do they have those at every courthouse and are they free to use? How accurate are they (I am assuming pretty accurate since they are run by the courts)?
Any other suggestions on good books to read?
Quote:
On 2007-04-24 09:43, bargain76 wrote:
When there are 2 mortgages foreclosing, it depends on which one goes to auction first.
If the 1st mortgage goes to sale, the 2nd is wiped out.
If the 2nd mortgage goes to sale, the purchase is subject to the 1st mortgage.
If the 1st Mtg goes to sal,e you say the 2nd is wiped out. Does that include any other Certified Judgments (other than tax liens)? How does that give clear title?
Michelle
well michael firslet me ask you want you want to do?? then i can help you
Read all about it in the Short Sale forum.
Chris
Short sales are all the rage these days. They present a way for you to create equity where none exits. The forums here are extremely useful in learning about short sales and I have a blog that is devoted to the subject. Check my profile for the url.
Good luck and good learning. Forums like this will give you a great base to start your career in investing.[ Edited by tarponkiller on Date 01/01/2008 ]