I'm tracking a home that has 2 juniors liens going up for trustee's sale, the senior loan is huge...almost 1 mil.

Whoever wins the auction of the first owns the house free of any junior liens.

Due to the presence of a junior lien, it isn't likely the bank would accept a DIL.Perhaps the owner/mortgagor misspoke.The Bankruptcy Trustee might consider allowing the sale of the property, but be advised it is the Trustee's job to realize maximum proceeds to satisfy the creditors.

In the state of new jersey all junior liens are extinguished at the auction.

Now you would most likely be able to pay off the first before the foreclosure since most foreclosure proceedings take a month or two.If the first lien forecloses then all junior liens (second and third) are gone.

Big welcome to the site @JUNIOR NELSON.

My primary deterrence to buy and hold for this particular property is that the house is directly in front of a junior high school.

It's in a low income area and is directly in front of a junior high school.

Transferring title to a junior lienholder as a result of foreclosure or acceptance of a deed-in-lieu of foreclosure of the junior mortgagorNevertheless I still did Lease Option the property out and it has went well over the past year. :)

Meaning a senior member may literally live next door (and share walls) of a junior member, and pay far more to live there then their neighbor.