Legal Question in Credit and Debt Law in California
2nd trust deed going bad.
I hold the paper on a 2nd trust deed secured by a house. If the owner negotiates a short sale with the bank, that holds the first, what are my options, (if any)?
1 Answer from Attorneys
Re: 2nd trust deed going bad.
The first mortgage holder will not and cannot accept the short sale without your consent. A short sale is a voluntary tranction done in lieu of a foreclosure. However, they cannot clear the title without dealing with your lien. Otherwise, the new owner would take title subject to your lien and your ability to foreclose.
If you cooperate in negotiations, you might get partial payment. If you don't, your lien might be wiped out in a foreclosure...or nothing may happen. You should see a local real estate attorney for further assistance.
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