Posted on: 23rd Jun, 2007 04:57 pm
Hi,
I sold a house & was a 2nd note holder. House went to forclosure, and went to auction. there were no bid on the house so first lein holder took the house. now how do i get my money?
thx
naved
I sold a house & was a 2nd note holder. House went to forclosure, and went to auction. there were no bid on the house so first lein holder took the house. now how do i get my money?
thx
naved
Navedh,
I would like to know a few things like how much was the amount of first lien and the price that was set for the auction? Was it more than the amount of the first lien?
I would like to know a few things like how much was the amount of first lien and the price that was set for the auction? Was it more than the amount of the first lien?
"Hi,
I sold a house & was a 2nd note holder. House went to forclosure, and went to auction. there were no bid on the house so first lein holder took the house. now how do i get my money?
thx
naved"
Yes Navedh it is important to know how much price that was fixed for the house at the time auction was set for the house.
I sold a house & was a 2nd note holder. House went to forclosure, and went to auction. there were no bid on the house so first lein holder took the house. now how do i get my money?
thx
naved"
Yes Navedh it is important to know how much price that was fixed for the house at the time auction was set for the house.
This is just one of the dangers of being in a second lien position---unless the first lien holder feels generous, they are not obligated to give you anything...
The only way you can legally get your money is to buy out the 1st lien holder, take possession of the house and resell it (and hopefully pull out your investment at that point).
Regards,
Scott Miller
The only way you can legally get your money is to buy out the 1st lien holder, take possession of the house and resell it (and hopefully pull out your investment at that point).
Regards,
Scott Miller
Hello Naved,
I agree with Scott. The first lien is not in least indebted to give you any money. So, you do need to repossess the house by buying back the house .Then you could resell the house and get the money.
I agree with Scott. The first lien is not in least indebted to give you any money. So, you do need to repossess the house by buying back the house .Then you could resell the house and get the money.
"The only way you can legally get your money is to buy out the 1st lien holder"
Most often if is difficult for the second lien holder to buy out the first loan as the first loan amount often is substantially more than his lien amount and chances of being able to sell the house to recover the total amount is difficult. This is the reason in the first place because of which borrower goes into foreclosure instead of selling and paying off the loans.
The risk second loan holder has this type of risk to bear and because of which second loans have higher rates to cover that risk.
Most often if is difficult for the second lien holder to buy out the first loan as the first loan amount often is substantially more than his lien amount and chances of being able to sell the house to recover the total amount is difficult. This is the reason in the first place because of which borrower goes into foreclosure instead of selling and paying off the loans.
The risk second loan holder has this type of risk to bear and because of which second loans have higher rates to cover that risk.