All Forum Posts by: Rachel Kim

From my understanding.. anything over the senior lien debt is to be paid to the junior liens.. to use as an example for this trustee auction.. say the senor lien debt amt is 100k and i believe the property would close at around 150k and i purchased the second junior lien debt of 10k wouldn't i be given the 10k from this sale ? .. and i read any lien holder can credit bid.. so can't i use my 10k debt to credit  bid assuming it goes over the senior lien debt amount ?.. please correct me if I'm mistaken... i do know that if the auction ends below or at senior lien debt my debt would be wiped out.. so  i know that risk.

Thank you  for reply..  I'm actually inquiring  about purchasing the second position bank debt prior to auction as I've  read that they are usually worthless to the bank and may sell it at discount.. I'm aware that this debt may very likely not be satisfied at auction if the final bid is below what is needed.. so my main question is just how one can go about in this case the bank that holds the lien in negotiating the purchase?.. is there anyone who has knowledge or experience??

Hi.. I'm  interested in buying this property at a trustee auction. I have read people  buying second position debts to use for credit bidding. I am actually interested in winning the property but if i don't  and it goes above the auctioning banks debt i should be able to collect the debt just purchased.. am i correct? ?.. so i don't  know how i go about possibly getting to buying this.. do i call the bank in  question and ask to speak to someone that can  do this or is there  another protocol or department ?. . Also when I'm credit bidding and auction ends at say 10k over auctioning lender debt amt  and my second position debt  i purchased is 10k   am i only to pay full amt of winning bid minus the 10k?