Posted by djswett on December 04, 2000 at 22:51:17:
Is a mechanic lien a faster foreclosure than a TD? Or is it the same time schedule as a non-judicial foreclosure? Have you alaready filed your lien claim–can you beat the Jan 18 sale date?
With 57% LTV on the first and the hot Calif real estate market, I should think that a BK with a court mandated and monitored sale would be your best bet. I’d even pay the trustor to file the BK (or at least, buy him lunch and encourage this course of action) at least this would allow the lender’s lawyer to argue for a legal decision for a sale for indemnification. Then I know that there would be a sale for say 70-80% LTV and your lien would get paid off. I can’t see the trustor walking away from $300,000 without trying to sell the place unless . . .
I have often found that the trustor freezes cuz he thinks the 90 day redemption period is plenty of time to solve his problem and then bingo, he only has a few days to get bailed out and of course, he can’t find a buyer in such a short time.
You may be able to threaten him with a bad credit report. If the first TD is a public institution, then the foreclosure will probably automatically show on his credit report; if it is a private lender, it is quite possible that there will be no credit report trail unless someone, like you, submits the foreclosure info to TRW/Experian.