loan foreclosure definition
deed of trust foreclosure?
I want to buy a foreclosure; starting bid 70,000 the deed for this loan was signed for in 2001, there is a second deed of trust for 50,000 in 2005. Would I be responsible for the second if I bought the first? I was told I would only be responsible for the 2001 deed I am buying and any loan or lien prior, or “senior” to that 2001 date. Is this true? What is the definition of a senior loan?
A deed of trust is what actually allows lenders to recover from the borrower using a trustee. So depending on what is the actual market valuation of the property we cant comment if its really a good buy. However on the matter of a senior lien the fact that a lien is noted earlier in time (before another lien) does not mean that it is the ‘senior lien’. A senior lien takes precendence of payment over all other liens, known as junior liens. Now as long as you pay off the senior lien then you are entitled to take possession of the property, that being the case employ the services of an attorney to investigate if there are any other lien holders that are claiming senior status. This can preclude you from entering a long legal process after paying your cash. Learn more on deed of trust at: http://bestrealestateagents.info/2007/11/11/deed-of-trust-foreclosure/
