All Forum Posts by: Matt Pfefferlen

I am looking at a foreclosure with a 1st lien foreclosing and the property has a second loan with an IRS lien after the 2nd.   After foreclosure by the 1st lien whereby the second gets zero, does the IRS need to pay some of the funds to the 2nd if the IRS exercises the right of redemption and sells the property for more?

Thanks all.  I assumed there was a black and white rule here.  It was postponed 2 days (45 minutes after auction time) and then another 19 days.   Usually on a first bankruptcy or a 2nd in a year, the foreclosure gets postponed initially for a pretty standard time at first.  The postponements in this case are relatively short (so far), which has made me wonder. I will just have to be patient and wait.

The first one was chapter 11 (automatic stay lifted in May but case not closed yet) and the new one filed the day before foreclosure (without the detailed forms submitted) was chapter 13.

I am interested in buying a foreclosure at auction which has been postponed a few days due to BK.   The homeowner has a case open still, but the automatic stay was lifted on a motion by the bank.  Additionally, the homeowner filed another BK a few days before the auction.  Does the homeowner get the automatic stay protection again on this new filing?

My original post confused the matter. My question now is those screenshots i provided in my second post which shows $1.462M as total secured but elsewhere in those same BK document they say the total debt is $1.063M with $400k being in arrears (the $400k is a subset of the $1.063M) which also is consistent with the mortgage statement of account i saw.  The NOS was close enough to know it is for the $1.063M not the $1.462M.  I think i answered my own question, but i don't understand why they would lay out those 2 schedules I copied in here implying the 2 amounts were additive and total $1.462k is secured.

I looked through more of the BK documentation.  The numbers in my initial question were dummy numbers, but it appears to me that in my example the $0.8M is the total owed and the $0.2M is a subset of the $0.8M.  However, that is not what is represented in certain places in the BK filings.  See screenshot below which to me implies the $399k and $1,063K are additive, but based on the NOS an other pieces of BK it is clear to me the total debt is just $1,063K.  Does this make sense?

I am a little confused on this, so i am wondering if anyone has seen this before.  The notice of sale is out on a home I am interested in.   From reading the BK filings, I am pretty sure there is only a first mortgage (I can't access county records now).  The BK plan showed $1M secured with $0.8M in mortgage ongoing and $0.2M in arrearage.   The NOS was just for the $0.8M.  However, I am pretty certain the $0.2M of arrearage is from the first mortgage so i am not sure why the NOS is for only $0.8M.  Any thoughts?

If there are no other liens after the HOA which in this case is foreclosing, does the homeowner get the excess funds from a bid greater than what is due to HOA? I imagine that is how it works, but seems a bit non-sensical given redemption right. Let's say HOA is foreclosing on $20k but I win bid at $40k. The homeowner can redeem by paying me back my 40k but does homeowner get that excess 20k which he then turn around and use to pay me the 40k?

When do trustees opt to list on auction.com?  The same trustee within a month had one house go through regular auction process and one listed on auction.com with in person auction.  Only difference in the latter is it is advertised on auction.com and the auction time is different than the standard. 

Thanks for the response.  Right not great equity. I got outbid at auction (I let it go) so that shows my thinking towards lack of equity.  however, I have had a change of heart since I want the house for more emotional reasons.