Buying a Second Deed at Foreclosure Auction

[Patrick Mahoney]

Hello,

I recently found a home in California that has two Deeds of Trust on it, the first being a mortgage and the second being a line of credit. The Trustee for the second (the line of credit) is foreclosing on the home and has announced the trustees sale at a public auction. My question is, if I purchase this at the auction with cash, the second is paid off (by me via purchase at the auction) but do I have the rights to the property but am liable to the first deed or does the homeowner still have the right to the property?

[Wayne Brooks]

@Patrick Mahoney Yes, you will own the property, but be liable for the amount of the 1st mtg….along with any late fees, interest, advances made by the first for taxes, insurance, etc…if the first is also in default.