Trustee sale in California
I am interested in bidding on a property where the second mortgage is in foreclosure. If I win that bid (1) will I then own the house? do I assume the first deed? will I have to have funds for the first deed as well as the winning bid on the second? (2) I have had a title search done and there are no other liens or encumbrances (3) where can I go to find all the details about trustee sales? 
laurieo,
Welcome to TCI!
In answer to your question:
I am interested in bidding on a property where the second mortgage is in foreclosure. If I win that bid (1) will I then own the house? do I assume the first deed? will I have to have funds for the first deed as well as the winning bid on the second?
Usually if you win the bid, then you may inherit the 1st mortgage depending on the amount you paid. You will have to have funds for the 2nd and possibly the 1st. It all depends on how the auction went.
Example
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Assumptions:
FMV (Fair Market Value) = $100K
1st lein = $60K
2nd lein = $40K
Scenario 1:
The opening bid was $10K.
Winning bid was $18K.
You will inherit the 1st lein because the 2nd only wanted to satisfy their lein. You usually have to payoff the 1st leinholder in full.
Scenario 2:
Opening bid = $65K
Winning bid = $75K
You will not inherit the 1st. The 1st leinholder gets paid off first and then the 2nd leinholder gets what's left and usually takes a loss.
(2) I have had a title search done and there are no other liens or encumbrances
You do not have to have a title search done, but it is recommended. You either need to get a title search done, so research yourself at the courthouse, or do both. You want to make sure you know what you are getting into with any property you purchase.
(3) where can I go to find all the details about trustee sales?
Contact your county courthouse and ask for more information about the trustee sale. There are many names for "trustee sale", like "sheriff's sale" or "foreclosure auction." So if they don't know what you're talking about, then try another term.
Tanya[ Edited by tanya1215 on Date 06/25/2003 ]
Tanya,
Thanks for the help, I will check with the county.