House In Foreclosure With A 1st 2nd And 3rd Mortgage
I am looking at a house that is going to foreclosure sale on September 6th. It is a 4,000 sq. foot home built in 1998. The county appraiser appraised the house this year at 268k. I know this is low as are all appraisals in Utah county, I guess they give us a break when it comes to the property tax. Anyways the deed of trust that is going to auction is the 1st deed of trust at the amount of $288k which was taken out in Feb of 2002 from Wells Fargo. Now I know the house is at least worth $288K in 2002 I would imagine we are talking 350k+ now. Which leads to my question. On Utah counties recorder website you are able to look up all the information that has been recorded on the house. I see in Feb 2002 $288k from Wells Fargo (1st), in March 2002 40k to Steve Margretts 2nd deed of trust and in April 2002 68k to Sure Investments 3rd deed of trust.
Now if I was able to bid and win at the auction on the first deed of trust to Wells Fargo, would I be responsible for the 2nd and 3rd deed of trust? It is my understanding if I bid on the 1st and win, the deed then drops the junior liens upon ownership transfer. The prior owner who was foreclosed upon would be responsible for the financial matters concerning the 2nd and 3rd deed of trust due to Margretts and Sure Investments.
Is this way of thinking correct? Or am I way off?
Thoughts? Opinions? If I am off on my thinking please help set me back on the straight and narrow.
Thanks,
Mike
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