Posted by Abdenour Achab on December 09, 2009 at 21:57:16:
Thanks John for your reply. First, a correction. The
note was not a purchase money loan, but a seller carry
back financing loan. I was confusing the two until a
few days ago when I previewed a book that was making
the distinction.
I don’t own the 2nd TD. I was planning to bid on a
note/TD 36 hours after my initial post, and wanted to
find out what owning it would entitle me to. I assumed
at the auction that I cannot go after the borrower if
the property is foreclosed by the first (conservative
assumption), and was outbid by the 1st TD holder. So I
don’t need to find out for a while.
Utah: Can 2nd TD PML go 4 assets - 4closure of 1st - Posted by Abdenour Achab
Posted by Abdenour Achab on November 18, 2009 at 21:06:44:
Hi,
In Utah, can the holder of a 2rd Trust Deed/Promissory
Note, created as a purchase money loan, go after the
assets of the payor after a non judicial sale by the
1st Trust Deed ?
In case that makes any difference, the property is
commercial (a one person real estate brokerage office).
I have 36 hours (= one business day) to find out, so I
may not be able to talk to a good lawyer within my time
restriction (I am in California - don’t even know any
good lawyer in Utah).
2d DOT will be gone, but note survives. - Posted by John Merchant
Posted by John Merchant on November 19, 2009 at 11:12:33:
Don’t know much (if any ;)UT law but generally, in any DOT non-judicial foreclosure state a foreclosure of the 1st eliminates all subordinate mtgs & DOTs.
Unless YOU have made a deal to take over and pay the 1st DOT holder, it’s likely all you’ll have left is your note which you can then sue on.
You might want to make contact with the 1st note & DOT holder today and see if you could make a deal with them to work out their debt and not lose your position.
Frequently the borrower/debtor on the 1st and 2d will file a last-minute BK action, either a Ch 7 or Ch 13 and that will “stay” the foreclosure and your debtor here might do that today. A call to the 1st note holder tomorrow am early would let you find out if a BK has been filed.