Posted by Bill H on March 03, 2006 at 20:07:56:
Even if she gave you the 2nd you still would have NO ownership rights or no rights to the property. Merely being a lienholder does not give ownership rights.
The only rights you have as a lienholder is that if your position is threatened by a senior lienholder’s foreclosure.
Every Deed of Trust that I know of says that a default on a senior lien is considered a default on your position…therefore you would have the right to reinstate the senior lien and then initiate your own foreclosure to protect your position.
It MUST go to sale and at the sale and the successful bidder would then take title subject to the 1st TD.
In this case you or the successful bidder must be prepared to deal with the 1st TD if they elect to call their loan under their due on sale clause as a result of the transfer of title.
Will it happen, probably not but you must be prepared in case it does.
Good Luck,
Bill H