Legal Question in Real Estate Law in California

Re: 2nd lien holder - NOD - foreclosure

The procedures do not change just because the borrower no longer owns the property. The only change is that you have additional parties that are entitled to notice of things like the Notice of Default and Notice of Sale.

There are foreclosure trustees that specialize in this type of transaction and the fees are set by statute. The best thing to do is hire one of these companies and let them handle it for your. Once the sale is complete, you can hire an attorney to evict the occupants and take possession of the property.

Re: 2nd lien holder - NOD - foreclosure

I agree with Mr. Starrett that the sale does not affect your rights; your lien is on the property, not its current owner. There is a possible exception worthy of note, however; if the buyer were a "bona fide purchaser without notice" of your lien, your rights might be difficult to impossible to enforce. If your lien was recorded, that would be notice, and the possible problem would not exist.