Question : What happens to other leins when foreclosure occurs?
My house in California is currently in foreclosure. I have a 1st and a 2nd mortgage as well as a 3rd, seller note. What happens at the foreclosure auction? What happens if there isn't enough funds to pay off the leins? What if any steps should I take?
- asked by Wondering
All Answers:
Answer #1
If there aren't enough funds at the sale to coverthe total amount of the debt you owe, the banktakes a loss and transfers that to you via yourcredit taking a big hit and you owing the balance.You'll have to discuss your options with themortgage holders.
- answered by dragonkraut
Answer #2
when the first note forecloses on the property allother liens/notes that came after which are calledjunior compared to the first note called thesenior, are wipe outdepending on the second note,if it was recourse they can come after you, alsothe third can come after you as well
- answered by goz1111
Answer #3
They can try to collect.Any recommendations shouldcome from professionals, not a forum like this.Its serious and its complex. Try talking to abankruptcy expert and see if you have any optionsregarding protecting the assets you have left.Here is a u tube page with quite a few videosabout your circumstance. Listen to a few of theseto gain an education and THEN please talk to aqualified professional. The internet, however wellintentioned, is full of mis informationYou tube;
http://www.youtube.com/watch?v=_UtEeOW0qAU
- answered by Howard S
Answer #4
Hi,I used "Credit Solution" to settle my debt andavoid foreclosure.They managed to reduce my debtup to 58%.It's legitimate.I came across thiscompany on NBC News Special Edition.Check it outhere:
http://urlhawk.com/549
- answered by Jennifer
Answer #5
The beneficiary who is subordinate to other seniorliens will lose their interest in the collateralif the home goes to sale by the 1st lien holder.NOW GET THIS! An REO investor (vulture buyer asthey call them) will often pick up the subordinatelien for pennies on the dollar and then bring thesenior lien current. That's right, these 2nd's aregoing for nothing under a negotiated settlement(can't say how much but trust me I see it everyday)! Now, investors will bring the 1st current inorder to take over the foreclosure and take yourhome with a loan in place! (no acceleration clausehere Charlie!).But you can do the same its good tobe King!. As a friend of mine who is with the lawfirm of "Dewey Screw'm & Cheat'm" told me. "Youthe owner need to find a third party to this foryou; negotiation with the 2nd where they willotherwise be forced out in foreclosure. (Carefulfor transparency and need for some disclosurehere) But offer the sub-lien holders as little aspossible and tell them to "Take a hike”. It'ssad but true, combo financing to 100% is nowviewed as highly predatory and it potentially isgoing to become a ghost! We in the industry callit equity skimming. Yo! Put down the biscuits andmustard and pencil this out! - It’s your bestalternative to losing your home!
- answered by borrowerhotline.com
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