Posted by camgere on June 11, 2009 at 22:53:24:
A 2nd Deed of Trust has to bring the first Trust Deed current and then go to Trustee sale. I’ve never done this so I don’t know the details. In any event the 1st Trust Deed gets paid off first. Consult a professional. California Department of Real Estate actually has a good reference on the subject. Chapter 5 is at:
Chapter 12 is at:
Happy Reading!
Can 2nd file for NOD too when 1st defaults? - Posted by Sara_CA
Posted by Sara_CA on June 11, 2009 at 18:55:41:
Subject: Can current 2nd file for NOD, when default 1st files for NOD?
Can the 2nd Deed of Trust file for Notice of Default too if the 1st Deed of Trust files for NOD, arguing that the 2nd position security is diminished (compromised due to borrower not performing on the 1st), even if the 2nd mortgage is current???
Suppose I own the 2nd Deed of Trust, when the borrower defaults on the 1st, and the 1st sells the property at a foreclosure auction. Suppose the highest bid at the auction is lower than the combined total of 1st mortagage plus 2nd mortgage, do I(2nd lien holder) have to bid even higher than the highest bid WITH ALL CASH AT THE AUCTION, in order to protect my position???
Thanks in advance to your expert comments. Thanks creonline for the great board.