What Position Is Foreclosing
Often times it is not the trust deed in first position, but rather a lien holder in a subordinated position that is foreclosing.
How does all that work and how do you know what position is foreclosing in the first place?
How does all that work and how do you know what position is foreclosing in the first place?
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A title search will tell you exactly what encumbrances are on the property and in what order of priority.
Most foreclosure buyers personally do a preliminary title search back to when the defendant purchased the property, then have a 30-year search done before they have to spend serious money on the purchase.
[addsig]
you can search the docs at the county recorders. lien priority is based on the date recorded unless a subordination agreement is signed. If recorded on the same day look at the time or document number assigned.
so if you have the following
chet bank 1/1/2000
chetco credit union 1/2003
Bank of bob 1/1/1980
you have bob 1st, chet 2nd, and chetco 3rd.
if a subordination agreement was also recorded saying bob is subordianate to all, then the priority would be:
you have bob 3rd, chet 1st, and chetco 2nd.
Tax liens, can trump other liens in priority.