What happens to the second?

4 Replies

Im looking at a los angeles county foreclosure list and i understand if you buy at the trustee sale all loans below the foreclosed loan get whiped away but what happens to the other loans if you arrange to buy the home from the owner before the sale?

I agree with NA Beard the 2nd will stay in its place and the 2nd will be in a position to foreclose because of due on sale if the clause is in the loan docs but they are also entitled to foreclose for any other default... if the 1st was foreclosing chances are that the 2nd was in default too