Re: Foreclosure

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Posted by Bill H on February 22, 2003 at 23:12:01:

In Reply to: Foreclosure posted by Rita Lawrence on February 21, 2003 at 18:22:33:

: We're selling a house to the Church next door.The mortgage is to be paid to me over a period of 16 years.
: If for any reason the Church doesn't or can't make
: the monthly payments, can I forclose? Will the property
: be put up for auction or will it get back to me,
: since I hold the mortgage on it? Could you please
: tell me how that works, my husband & I don't agree on that. He say's if I put a stipulation in the contract
: that I forclose if no payment is being made, I loose
: the property to the highest bidder on the auction
: block. Please inform me if that is right.
: Thank you in advance,
: Rita Lawrence

Rita:

1. If your Trust Deed has a power of sale clause, then you can foreclose. Most probably it will.

2. If you foreclose, the house will be sold per the terms of the Trust Deed and Power of Sale and will go to the highest bidder. You are entitled to what you are owed on the mortgage --no more -- no less. If no one bids, you get it back. If someone bids one dollar over the opening bid, they get it. You, as the beneficiary, set the opening bid for the amount owed and can bid.

Remember, that any money over the opening bid is used to pay junior liens, etc., and then goes to the person being foreclosed on. It will not come back to you just because you bid it up.

You cannot have your cake and eat it too.

Sorry to inform you but your husband is correct....if someone bids it up they get it.

Bill H

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Comments:
: : We're selling a house to the Church next door.The mortgage is to be paid to me over a period of 16 years.
: : If for any reason the Church doesn't or can't make
: : the monthly payments, can I forclose? Will the property
: : be put up for auction or will it get back to me,
: : since I hold the mortgage on it? Could you please
: : tell me how that works, my husband & I don't agree on that. He say's if I put a stipulation in the contract
: : that I forclose if no payment is being made, I loose
: : the property to the highest bidder on the auction
: : block. Please inform me if that is right.
: : Thank you in advance,
: : Rita Lawrence

: 
: Rita:

: 1. If your Trust Deed has a power of sale clause, then you can foreclose.  Most probably it will.

: 2. If you foreclose, the house will be sold per the terms of the Trust Deed and Power of Sale and will go to the highest bidder.  You are entitled to what you are owed on the mortgage --no more -- no less. If no one bids, you get it back.  If someone bids one dollar over the opening bid, they get it.  You, as the beneficiary, set the opening bid for the amount owed and can bid. 

: Remember, that any money over the opening bid is used to pay junior liens, etc., and then goes to the person being foreclosed on.  It will not come back to you just because you bid it up.

: You cannot have your cake and eat it too.

: Sorry to inform you but your husband is correct....if someone bids it up they get it.

: Bill H 


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