Order Of Liens
This is probably a basic question for most of you out there.
1. What is the order that Liens need to be paid?
I know tax liens are first followed by and government lien on the property. However, I need to know about liens such as mortgages.
2. If you win a bid on a 2nd mortgage, are you required to pay the first mortgage?
3. If you win a bid on a first mortgage, are you responsible for subsequent mortgages?
4. What other liens are you responsible for?
5. What other liens are you not responsible for?
Any help to these questions would be greatly appreciated.
EstateXchange
1. What is the order that Liens need to be paid?
Normally the order of lien status is determined by document date and or recording date.
2. If you win a bid on a 2nd mortgage, are you required to pay the first mortgage?
If you are the hold of a 2nd note position you will need to clear all encumbrances as your 2nd note purchase is subject to all liens
3. If you win a bid on a first mortgage, are you responsible for subsequent mortgages?
No.
4. What other liens are you responsible for?
This is dependent on the type of lien - Normally HOA, federal and state liens will stay in place subject to lien time frames.
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Hopefully, you have filed a "Request for Notification of Notice Of Default" so that you will be notified if the first files a Notice Of Default (NOD). If they have already filed, you can cure the default on the first and then file a Notice Of Default on your second. If the first has not filed an NOD you should do so quickly. This way your sale will come up first and you will made whole and not have to deal with the first. If the judgment liens were filed after your second was recorded, they are likely to be wiped out in a foreclosure sale.
vatt02
Sorry that you are having problems with your note.
If you recorded your 2nd position note you will be notified under California statue with out having to file a NOD, the filing of a NOD is not for the purpose of getting notifications if the 1st forecloses it is for the purpose of notifications procedures to effect a foreclosure proceeding.
If the 1st forecloses you will have to bid on the property to protect the security of your note, so what I am saying you will have to bid and pay 400k plus to protect your 50k note.
You can foreclose on the property at a mortgage holder.
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