Subordinating Liens Wiped Out At Auction?
I am looking to buy a property at the Sheriffs sale/Auction coming up and this property has 4 liens on it from various lenders. The first lender is the foreclosing lender. If I buy the property at the auction, are the subordinating liens wiped out upon auction sale or am I stuck with them attached to the property and now responsible for paying them off as well? I do not want to be in a position where I buy the property with these other liens attached. No money in it at that point. Thanks!
If these are mortgages or deeds of trust that are recorded after the recording of the foreclosing note holder and there is no subordination agreements, they will be removed by the sale.
I should clarify, Has anyone bought a 1st position note then allowed the foreclosure to proceed to its natural end?
I helped to facilitate such a purchase for a client in a divorce situation.
Since there was a sufficient cushion of equity, there was no discount.
My client, a friend of one of the mortgagors, stepped in, bought the mortgage, and controlled the foreclosure...
and essentially refinanced the former mortgage for the exclusive benefit of his friend... (having foreclosed the interest of the former spouse)
bobhope, do not kick yourself in the butt. I am quite sure that you could not have bought the note 3 or 4 days before the auction
Brenda
If it goes to a REO on the foreclosure of the first you get nothing.