Bought a house on a 2nd loan foreclosure

[Joe A.]

Hi all,

I am in california. Bought a house on a 2nd loan foreclosure. I got the deed from 2nd loan trustee.

I know that I have to payoff the 1st loan too. So, I found the bank and trustee for the 1st loan. Trustee gave me the payoff quote for the 1st loan. The quote is higher than the market value of the house, so I want to negotiate the payoff amount for the 1st loan. Trustee says I need to talk to bank for negotiations, but the bank does not want to talk to me because I am not authorized on the account.

It is ironic that they sent me the payoff amount, but say that they cannot negotiate because I am not authorized...Isn't it strange? If I am not authorized, why did they send me the payoff quote? Also, I asked what happens after I payoff the 1st loan? they say, they will just issue "full reconveyance". Aren't they supposed to give me another deed ?

Do we have anyone experienced in dealing with 1st loan after buying 2nd loan foreclosure.

To summarize, I have 3 questions:

- How do I negotiate the payoff amount for the 1st loan given the situation above? Bank and their trustee sent me the payoff quote, but does not want to talk to me saying I am not authorized on the account.

- After I payoff the 1st loan, aren't they going to issue a deed for me? instead of full reconveyance? FYI, I already have a deed which i got after winning 2nd loan foreclosure.

- Suppose I don't pay the 1st loan and walk away, and 1st loan bank proceeds to foreclosure. Will the foreclosure be on me or current owners/occupants? Will it hurt by credit history or theirs? 

Thank you