Comments on: Trustee Sale Today

By: Brian

Brian — Sat, 21 Nov 2009 13:46:56 +0000

Yeah, that is what I said in more general terms.

By: Local Boy

Local Boy — Sat, 21 Nov 2009 05:25:11 +0000

Brian-The IRS can actually Redeem the property within 120 days of your purchase, at your purchase price plus interst, if they choose–not usually likely.

By: Clanging on Klinge

Clanging on Klinge — Sat, 21 Nov 2009 04:51:24 +0000

Do You Like Cement feet ! LOL

By: brian

brian — Sat, 21 Nov 2009 04:05:46 +0000

See this for a good summary.

It doesn’t make sense that the IRS can jump in front of other note holders, as this would cause havoc to the mortgage industry. Someone could not pay their taxes, have the government take the house and leave the first loan holder SOL. Not a reasonable outcome.

However, if the IRS can do this, it seems that they don’t most of the time, which makes the issue moot. The only lien to survive foreclosure is property tax. All other liens are either paid out or blown away, as they should be and as you would expect.

BTW, I once bought a condo at foreclosure and the owner filed for bankruptcy the same day. It was a bit of a headache, but I still got ownership in the end.

By: clearfund

clearfund — Sat, 21 Nov 2009 03:12:22 +0000

don’t forget IRS liens….they trump all (including tax rolls).

likely to become more and more of an issue over time given that a lot of these loans were issued to self employed type people with no-doc loans thus no employer/wages to handle withholding and garnishment…

By: chris g

chris g — Sat, 21 Nov 2009 01:25:13 +0000

what about mechanic’s liens? And do mechanic’s liens get filed with the county? There is considerable leeway on when a contractor can file a mechanic’s lien, too.

By: Jinx

Jinx — Sat, 21 Nov 2009 01:15:46 +0000

I think it all depends on what order the debts are in. If a the holder of a second mortgage forecloses on a property and you buy it auction, you’re still on the hook for the first mortgage. But if the first lender forecloses and you buy the home at auction, then all other later liens get wiped out (except tax liens). Does that sound right?

By: pepsi

pepsi — Sat, 21 Nov 2009 00:38:42 +0000

Red:
“What happens if there is an unrecorded deed or debt that shows up after you purchase a property?”

They get wiped out.
I believe in CA, secured lien must be recorded. If it is not recorded, it is unsecured and it goes with the first owner, not the property.

By: Genius

Genius — Fri, 20 Nov 2009 23:26:39 +0000

Erica – That property has been around for quite some time, and there’s another very similar one in the same neighborhood that’s been getting stale as well. I wouldn’t expect them to sell soon, but who knows what will happen given the $115k price cut. Amazing how different the markets are between adjacent cities; if those were in Cbad they’d have sold long ago.

Still waiting for the DM/Solana crash

By: red herring

red herring — Fri, 20 Nov 2009 21:57:38 +0000

Great article about PMI and foreclosures.If you have PMI you are more likely to get foreclosed on.The lender is insured past 80% of the value of the home when you bought it.So the insurance money + the residual sale value could be worth more to them than a short sale.

http://realtytimes.com/rtpages/20090420_mortgage.htm