Foreclosures Help Information

Posts Tagged ‘foreclosed property’

Foreclosed Property California

Question: What happens in California when a property is sold at trustee sale?

If a first lien holder forecloses on a property and it is sold at trustee sale what happens if the sale amount is more than enough to cover the first lien and foreclosure costs? Will any junior liens be repaid?

For Example

1st lien - $200,000
2nd lien - $20,000
3rd lien - $22,000

Sale Price $300,000

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Answer: You ask a very good question.

In my experience in California, at trustee sales, any amount received over the amount of the lien that was foreclosed plus costs is given to the former owner owner of the property who lost the property in the foreclosure.

In your example the second and third lienholders lose their interest in the property, unless they have also foreclosed on the property.

In practice second an third lien holders record a request for notice of default. If the first is in default, the documents are usually written giving the second and third lienholders the right to foreclose as well even if the homeowner is current with the payments on their loans.

Also, virtually all mortage documents have provisions that call the loan due if the secured interest is sold. If there are any proceeds left over after the trustee's sale they would be used to pay all or part of any other liens on the property.

However, the trustee of the first loan may give any left over proceeds of the sale to the former owner of the property and the former owner may walk away with cash and not pay the second and third lienholders.

That is one of the many reasons that the second and third lien holders must be on their toes and that is also one of the reasons why second and third liens carry much higher interest rates than the first.

It does happen.

Foreclosed properties in Point Loma California

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Foreclosed Investment Property

Question: Will I lose my house after my 6 investment properties are foreclosed on. How can I keep my home.I'm self empld?

I own a small construction company. Work has been slow. My credit cards are maxed out and I am about to not be able to pay the 7 mortgages I have. (4 houses have been unrented on and off). I want to at least keep my primary residence for my kids. I have a small pension fund. I need to keep that and use it for food and basic expenses. What is the best plan of action?
Thank you.

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Answer: try selling your rentals as fast as you can if you can. Then work on keeping the home you live in try bidding lower on some jobs to keep the cash coming in as well

16207 Ohio, Detroit Foreclosure / Investment Property

Foreclosed Mountain Property

Question: What is the best way to foreclose on an investment property without ending with debt & taxes?

My realtor is trying to short sale this property, but a bankruptcy attorney recently suggested allowing it to foreclose and for me to file bankruptcy to avoid any debts & taxes. Is bankruptcy the only option for not ending up with a mountain of debts. I'm presently unemployed.

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Answer: Believe it or not, most attorneys are honest....at least with their own clients....lol

If the bankruptcy attorney recommended this to you, then that's most likely your best course given your personal financial circumstances.

Unfortunately, many people are in the same situation as you. I would take the advice of the attorney. I have in the past, and it worked out best for me in my case.

Foreclosure; the Start of Mountain Wind Family