Need Help With A Possible Deal In CA .
I found a property that has three liens on it, the liens are 1st 400k, 2nd 52k, and the third is a 9k tax lien. The 2nd is going in to default and will go to action
in the first part of OCT 2003. Here is my question, if I bid and win at the action, will I have to pay the first bank back for there loan of 400k or do all other liens get wiped when I pay off the second? In addition, is the tax lean wiped or do I pay that as well? The owner originally purchased this home at an action in Jan of 2003 and has gone into default in April as well as now. Owner does not want to let this property go and does not want to talk about selling it. The comps are coming back at 600k to 650k after repairs; all information would be greatly appreciated.
The first will not be wiped out, you will have to pay off the first and throw them out of the house. Or at least satisfy the dificiency and assume the first, this is where it gets tricky use a "Title Holding Trust". Most firsts are not transferable so you will need to have the deed under the trust or pay off in full. Second the tax lien, if it is Franchise tax board it falls off, if it is IRS they have 90 days to take action after the sale date. Check also with the county property tax collector they have up to 5 years of not paying property taxes before they forclose... Also look for childsupport liens, basically search at the recorders office the current owners name(s) and look for judgements etc...
Good luck