All Forum Posts by: Sean Stewart

Thank you, Chad!  Must have missed that notification.

Scenario: 2nd lien bank foreclosure auction ~ $50k judgement/fee/interests.  Winning Bid at auction $100k.  1st lien owed $150k (not in foreclosure yet)

My question: Does any winning bid over the 2nd lien credit bid automatically apply/pay toward the 1st lien creditor?  Meaning, does that 1st lien lender (so not technically a subordinate lien) receive the additional $50k at the closing, essentially reducing their position to $50k?

Put another way, where does the $50k over the 2nd lien go?

Appreciate your response, Chris.

To confirm I understand your meaning, I know when a a bid is greater than the 1st lien the funds flow to the 2nd, 3rd, etc.  Are you saying the same in true in reverse?  Technically, the 1st lien isn't subordinate to the 2nd.  If I understand you, when the 2nd lien goes to auction and someone outbids the lender, additional funds go to the 1st lien, ever though they had not yet initiated a foreclosure proceeding?

Hope I'm making my question clear!

Thank you, Bob.  I've noticed some investors showing up with just $1 more than the credit bid, but typically when I contact the bank's attorney they tell me they are not allowed to provide any info.  Does this response vary from atty to atty?

1 more related question regarding a 2nd lien auction.  I am aware the 1st lien remains in affect and believe I have a handle on the challenges/steps for navigating that process.

My question:  Does any bid over the 2nd lien credit bid automatically apply/pay toward the 1st lien creditor?  

Example:  $50k 2nd lien auction; $200k 1st lien.  Property sells at 2nd lien auction for $150k.  Does the additional $100k pay straight to the 1st lien holder?

Looking for intel on how to find out EXACTLY what the bank's credit bid will be at foreclosure auction.

I see the judgement amount listed in the case filing.  After attending several auctions I know the actual amount the lender bids includes fees + attorney costs.  So is the judgement is for, say, $175k, the actually amount of the bid is usually somewhere in the $185k-ish range.  

I'm bringing multiple bank checks, but I would love to have 1 for just $100 more than the actual bank bid instead of guessing.  (referees seem to go in $100 increments here)

Do I contact either the referee or plaintiff's attorney to find out what this total will be in advance?  Haven't found this specifically covered in the many, many foreclosure related posts (though I'm sure it exists!).