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Seth M.
  • Rental Property Investor
  • Oklahoma City OK and Glendora, CA
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Assuming Senior Lien After Trustee Auction- California moratorium

Seth M.
  • Rental Property Investor
  • Oklahoma City OK and Glendora, CA
Posted Jun 21 2021, 12:55

Hello I recently purchased a property at a Los Angeles county trustee sale via the 2nd lien foreclosing. Title has been perfected and 3 / 90 notice has been served to the current owner. 

I am in contact with the senior lender trustee and I have received the payoff details for the remaining loan. Ideally, cash for keys or eviction process would go relatively quickly and I could just payoff the senior lien via escrow when I finance the property considering the foreclosure file is currently on hold and when they reinstate it, they would provide notice of sale. 

My question is-  given these circumstances and the unknown implications of an eviction moratorium extension and/or drawn out process, should I go ahead an reinstate/assume the senior loan since whatever I pay out of pocket would just be reducing what my lender pays off when I finance it? Other than having to assume the monthly payments, are there any downsides I'm not considering?   Thanks!

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