Foreclosure property - distribution of proceeds

[Carol Lam]

Hi,
I found a foreclosure property that I am interested in.  Bank is foreclosing on the 1st loan.  If I won the bid, does it mean I won't be responsible for 2nd loans?  How about if there is an abstract judgment on the owner?  Would I be liable for the judgment amount? I know federal, state and property tax will need to be paid by the bidder.

What is the process for the buying the foreclosure property?  So far, I have done the following:

1) Identify property

2) Research on the property for loans and liens in the county recorder's office

3) Visit the property

4) Secure Title Company for its service when needed

Let's say， I won the bid.  I gave the trustee the cashier's check.  What's the next step?  I am not likely to bid on this property but I do want to learn about the trade as much as I can.

Thank you.

Carol

[Chris Seveney]

@Simone Litsch

You typically don’t need to take title insurance out on it.