Legal Question in Real Estate Law in California

Re: Foreclosure

The holder of a second deed of trust can foreclose if either the first or the second is in default. Usually the second forecloses when the senior is in default to protect its security interest. If the senior foreclosed, the junior would be a "wiped out" junior lienholder. (Of course, this does not prohibit the second from going after you for the debt, personally, once he is wiped out.)

When the second forecloses, he or she can purchase it at the foreclosure sale. Regardless of the purchase, the property is still encumbered by the first deed of trust.

If neither is in default, but the property is proceeding to a non-judicial foreclosure sale, you had better get an attorney fast. The foreclosing beneficiary usually has the trustee record the notice of sale three months after the notice of default, and the actual sale is 21 days later. It is better to stay an improper sale now than to try to set it aside later.

Very truly yours,

Re: Foreclosure

The second trust deed holder cannot put you in foreclosure if you are current on the first trust deed as to all conditions. Apparently there appears to be another problem. Please contact our office if you have any questions.