trustee's sales.

2 Replies

I am just starting with trustee's sales. I have been tracking a few, and going to the auctions, just to see how the whole process is. There are a couple of homes that are coming up for auction at a trustee's sale, that I could be interested in. I'm leary though. I've called a couple of title companies to see if I could pay for a title search, and they won't on a trustee's sale because it is too risky. So I've gone to the Hall of records to do a title search my self. I understand some of the docs. but not all. How to I protect myself when buying at an auction, so I don't get stuck with someone elses debt? Also I heard that is you buy the senior loan, it wipes out the junior loans. Is that true?

:D Hi
Well you are close on most of what you ask. If the trust deed you are bidding on in in first postion ( the first recorded) then yes everything behind in (second,third ) are wiped out. The key for me was to look at the date of recording at the court house. This are great but they require a chunk of cash up front. I like tax liens much better and you have a chance of ending up with the property too. Keith

Thanks for your reply. If a lein is not recorded, do I still have to pay it if I buy the property? Do I owe any machanic liens that are unpaid, if I buy the first? and could you explain to me what tax leins sales are and how they work?