Judicial Foreclosure with a previous Trustee Sale
Hello Fellow BPer's,
I am looking at a property that is going to judicial auction in a few weeks or so and have been doing my homework on it, however I have stumbled upon something that I have never seen before. A few years back there was a trustee sale where the second mortgage on the property foreclosed on the owners, it went to the auction, no one bid on it and now the 2nd has title to the property. However, now the first loan is foreclosing on the original homeowners. The court documents state "Bank vs. Homeowner", yet how can the bank be foreclosing on the original homeowners if the 2nd bank received a Trustee Deed for the property a few years ago. According to the assessor's office, the 2nd bank has ownership of the property. After the judicial auction of this property, does the 2nd simply disappear and now the winning bidder is the new owner? I would not think that the 2nd (who currently owns the property) would give up their ownership after this auction. If anyone has any insight as to how this might work, it would be greatly appreciated. I am going to see an attorney about this, I just want to see what the biggerpocket genius's have to say first. I know that when the first forecloses the second is cancelled out, but what happens when the 2nd has title to the property and the first is foreclosing on the original homeowners? Thanks for any input! I look forward to hearing what people have to say!!