Legal Question in Real Estate Law in California

Re: second lien holder foreclosure

The first can foreclose on you. The first may refuse to take payments from you to cure the default. So, you should sell the house before it forecloses. You may also file bankruptcy to stop a pending foreclosure sale, but this will only delay the inevitable. You will still need to sell the property as fast as you can. In the alternative you may refinance and pay the first off in full.

Re: second lien holder foreclosure

You are now the owner by virtue of your trustee's deed after sale and you must step in and make all the payments that the trustor/borrower is/was supposed to make on the first trust deed loan. You must contact the first trust deed lender immediately, particularly in that if the borrower was not paying you, he likely fell behind on payments to the first loan also and if they foreclose your interest is wiped out, gone. If the borrower was in default, make up all his past due payments and start paying the regular monthly payments on the property and you can resell it or rent it or do whatever you want because you own it.

Re: second lien holder foreclosure

Ms. Deming's answer is thorough.

Follow her instructions (i.e. suggestions).

Do not waste any time! It seems like a high percentage of lien holders is filing foreclosure in California.