Foreclosure By 3rd Lien
Please advice on the foll situation
A private lender had a 3rd Lien of about $9300 on the property: was after the first mortgage (about $190K with BofA) and second HELOC (about $30K with BofA). He filed for foreclosure and took property to auction
He was at the property asking the tenants to vacate; landlord does not live there.
Can 3 lien holder foreclose?
I guess they can but do they have to pay off/ satisfy the 1st and 2nd loans with BofA?
Can they get possession of the property?
I thought the tenants get 90 days to vacate after the auction
A similar kind of scenario happens frequently around here... substitute private lender with HOA and this kind of foreclosure happens about every week in Wake county, NC.
That happened to a property I acquired in my city. The sale did not cover the liens the city had on the property and I ended up paying about $2500 extra in unexpected lien charges.
There seems to be a mixed story as to weather a DIL impacts you create or note. A buddy did a consult w/ an atty in CA and he said it would.
Response from an attorney:
It really does not matter as he already has a foreclosure and bankruptcy on record.
It really only benefits the lender.