A Close Amigo Of Mine Called To Discuss A Friend’s Problem
She was getting cheated on a Trustee Sale of a home worth more than $1M.
The home had a $400K+ loan and a second that was foreclosing for, let’s say, $130K. The lady was getting bad legal advice, no action, and it went to sale.
The final bid was around $430K. The former owner received a notice to move out but no info from the trustee.
When The Bid At An Auction On Any Lien Goes Over The Opening Bid
AND there is no junior lien, the extra money goes to the home owner. It does not go to the foreclosing party or any senior loan holder, to pay over-due taxes, etc.
Now, my friends have recommended an outstanding attorney to her and it appears she will get the excess. It is always so sad that people do not move early on Trustee Sales. (In this case she could have listed the property during the notice period and tried other foreclosure delaying procedures).
And she kept the first current. That money could have been saved. In most cases you keep junior liens current, not the firsts. If there is lots of equity in a property, junior lien holders will move fast. They are not called hard money lenders because of their workout habits.
And Another And
Any residential real estate agent in that area should have seen the Notice of Default. That allows 4 months plus to list and sell so make the contact. Where were all the SFR designees in Orange County? They received this designation from CAR and are supposed to be experts in Short Sales, Foreclosures and Real Estate Owned sales.
Final Thought, Agents
Study Crowd Funding. Raise enough money to pay off the second. Give the nice lady a one-year note. Rehab and sell the property and pay off the nice lady.