Re: Both First and Second Lien Holders foreclose on Property?

Posted by Bill H on February 11, 2003 at 20:29:43:

In Reply to: Re: Both First and Second Lien Holders foreclose on Property? posted by Nick(Colorado) on February 11, 2003 at 20:22:50:

: IB:

: To protect their interest in the property the second may now
: buy-out or reinstate the first. If they do not want to go this route
: they may go to auction before the first, wait out the ten days, get
: the deed, then do a buy-out or reinstatment of the first. Only if the
: first goes to auction before the second, and then the second does
: not redeem, do they lose interest in the property.
:

In your scenario:

1. Second TD forecloses and takes over the property subject to the first.

2. If second does nothing to reinstate or pay off the first or negotiate with them and first goes to foreclosure; the second will be wiped out.

3. Liens have priortity based on their position. The first is first, the second is second, etc. Anything junior to the foreclosing lien is, with certain exceptions, wiped out at the foreclosure sale.

Follow Ups:

• Re: Both First and Second Lien Holders. Help For You. - P.H. Miller 15:41:22 02/09/06 (0)

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Comments:
: : IB:

: :   To protect their interest in the property the second may now 
: : buy-out or reinstate the first. If they do not want to go this route 
: : they may go to auction before the first, wait out the ten days, get 
: : the deed, then do a buy-out or reinstatment of the first. Only if the 
: : first goes to auction before the second, and then the second does 
: : not redeem, do they lose interest in the property.
: :  

: 
: In your scenario:

: 1. Second TD forecloses and takes over the property subject to the first.

: 2. If second does nothing to reinstate or pay off the first or negotiate with them and first goes to foreclosure; the second will be wiped out.

: 3. Liens have priortity based on their position. The first is first, the second is second, etc. Anything junior to the foreclosing lien is, with certain exceptions, wiped out at the foreclosure sale.


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