Just Starting - ? About Total Debts
I'm just learning about foreclosures and would appreciate your help!! 
I live in CA and found a beautiful home going up for foreclosure in a couple weeks. The junior lienholder submitted a NOD 3 months ago and has sent out the Notice of Trustee Sale. Now the senior lienholder submitted a NOD. Can the junior lienholder have a Trustee Sale instead of the senior? What happens to the bid amt and the senior lienholder?
Secondly, there are other small liens ($2k, $4k) that would have to be paid once acquiring the deed, right? What about a state tax lien that was filed prior to the NOD / Notice of Trustee Sale? Would that also have to be paid if I bid on the home? Is the rule different if it's a fed tax lien?
Thank you so much!
Lisa
i thought the secondary liens disappear in foreclosure.
thats how pre-foreclosure "gurus" get the secondary lien holders to sell their debts for pennies on the dollar.
can someone clarify this please.
Lisa, update your profiel so I can see where in CA you are. I work for a Mtg Co. A 2nd could go ahead and have a trustee sale if the equity in the property is there. For example: home value $250K, 1st 180 and 2nd $45K. This probably would be pretty close counting attorney fees, etc., but the 2nd would have a very good shot at recovering their principal balance in this scenario. If the 1st has the trustee sale before the 2nd lienholder, the 2nd could be wiped out ... so the 2nd may be better off biding at the 1st sale and buying the house to protect their interest BUT really ... who wants to tie up so much money paying off the 1st. Any tax sale in CA will wipe out any 1st, 2nd or other junior liens so both the 1st and 2nd, etc., pay close attention to the pmt of property taxes. See my profile and send me an e-mail and we can discuss more at length. Good luck!
whomever files foreclosure first ... WINS!
In this case, the second mortgage filed first.
So, the second mortgage goes to foreclosure. The First mortgage stays in place.
Whomever buys the property at the courthouse steps will need to either bring the first mortgage current OR pay off the first mortgage.
Otherwise ...
The first mortgage will go to foreclosure sale and whomever is the highest bidder at the courthouse steps will be the NEW owner.
Does this make more sense?
Hope This Helps,
Mrs. Meltzer
Both Federal and State Tax liens are due and payable at the time of the sale.
If you do not pay the Federal Tax Lien, the IRS has the right to "redeem" the property for a period of 180 days. That means they will take ownership of the property and return to you what you paid for it AT THE SALE. If you rehab the property or spend any other money on mortgages or other liens, that money will NOT be reimbursed.
Once the 180 days pass, the liens by the IRS will be discharged.
Hope This Helps,
Mrs. Meltzer
Hi,
Question for pre-foreclosure gurus:
How do you negotiate with 2nd lien holders (banks) so as to pay them off pennies to the dollar (as mentioned above by niravmd) ? Please recommend any books or articles that discuss techniques? I don't see why banks would be foolish enough to agree.