What To Do At The Auction
I just need some info. I am intrested in a house that is being auction off. I know that the house has 2 liens from the same bank. 1st lien is for $200,000 and the 2nd for $50,000. If I am the high bidder at the auction will I be responsible for both liens? 
It depends on which one is foreclosing on the homeowner. Is the 2nd foreclosing? or the 1st foreclosing? If the 2nd leinholder is foreclosing on the property, then you might inherit the 1st lein.
Tanya
What happens to the 2nd lien if the 1st (Primary) Lienholder is foreclosing. Is it anulled ??
Thanks
Qwikm
Quote:If I am the high bidder at the auction will I be responsible for both liens? zackim,
If you are the high bidder at the auction, you have to bring your own cash to the settlement table for the amount of your bid purchase price.
Both liens will go away, because you will cash them out with your own cash and/or new financing.
Logically, if the foreclosing lender holds both the first and the second note, their foreclosure will protect their position to include both notes, plus the costs of foreclosure. If the liens total $250K and the costs of foreclosure are another $5K, expect the foreclosing lender to bid up to $255K at the foreclosure auction. For you to win, your bid will need to be $1 higher.
If 2nd is holding the sale, do they keep the entire winning bid even if it is over what is actually owed on the 2nd? Or do they automatically forward the balance to the 1st lienholder regardless of whether they are the same lender?
I don't want to over bid if none of the "excess" will be used to satisfy the 1st. Otherwise, the 1st would end up asking for their balance without no credit from the over bid on the 2nd?
Veterans, please help -- Next auction is 8-11-03. Thanks!
?Why wouldn't the bank bid almost up to what is owed on the loan if they could get rid of the property right now instead of waiting and trying to sell it later?