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?
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?