Legal Question in Real Estate Law in California

Trustee Sale in Bankruptcy

We are individuals who filed a CH11, owned a invest. property with 4 liens. 1st institution, other 3 private. A relief of stay was granted and 3rd lienholder held Trustee sale, only bidder.

We recently received a Notice of Trustee Sale from the 2nd lienholder AFTER the 3rd purchased at the Trustee Sale. Contacted the 2nd lienholder and asked why a Trustee Sale was being held with our note being noticed. Was told that the 3rd who purchased the property at their sale had not made any payments to 2nd or 1st.

I thought the Jr. leinholder had to pay off the senior loans to purchase at the Trustee sale of the 3rd leinholder. Was told that they just ''assumed the debt''. We didn't have a assumable loan.

Are we now liable for the previous loans? (1st & 2nd)

Was the 3rd suppose to pay off 1st & 2nd to legitimately purchase at the Trustee Sale?

Thanks!


Asked on 7/17/08, 2:40 am

1 Answer from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: Trustee Sale in Bankruptcy

No.

Read more
Answered on 7/19/08, 2:54 pm


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