What Position Is Foreclosing

Often times it is not the trust deed in first position, but rather a lien holder in a subordinated position that is foreclosing.



How does all that work and how do you know what position is foreclosing in the first place?

Comments(2)

  • bargain7631st May, 2007

    A title search will tell you exactly what encumbrances are on the property and in what order of priority.

    Most foreclosure buyers personally do a preliminary title search back to when the defendant purchased the property, then have a 30-year search done before they have to spend serious money on the purchase.
    [addsig]

  • cjmazur31st May, 2007

    you can search the docs at the county recorders. lien priority is based on the date recorded unless a subordination agreement is signed. If recorded on the same day look at the time or document number assigned.

    so if you have the following
    chet bank 1/1/2000
    chetco credit union 1/2003
    Bank of bob 1/1/1980


    you have bob 1st, chet 2nd, and chetco 3rd.

    if a subordination agreement was also recorded saying bob is subordianate to all, then the priority would be:

    you have bob 3rd, chet 1st, and chetco 2nd.

    Tax liens, can trump other liens in priority.

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