I am lien holder of the second lien. I was not informed about the trustee’s sale.? Does the trustee need to give me a notice after the sale? Is my lien got wiped out? Do they need to record any document? in additon to the Trustee’s Deed in order to wipe out my lien?
Many lien-holders, particularly those in a junior position to a deed of trust, will file/record a ‘request for notice’. This obligates any trustee who later records a notice of default and subsequent notice of trustee sale, to notify you … essentially informing you that your position is vulnerable under a scheduled (forthcoming) auction. Of course, you did have the option of attending the trustee sale to defend your position (i.e. come with ‘checks in hand’ and ready to bid to ensure you are not ‘wiped out’). The NOD/NTS are mailed, recorded and publicly advertised (online + local newspaper and posted @ property).
Re any notice obligation ‘after the sale’? … Other than recording the trustee’s deed upon sale, none that I know of.?
One scenario I recently encountered… Property (large 1st DOT held by Deutsche Bank) going to trustee sale w 4 previous NTS (‘foreclosure roulette’). Owner rented out property & delayed foreclosure for years by employing services of a ‘perpetual bankruptcy’ pro (quit-claiming % to parties in BK) who was arrested by FBI Jan 2013 & charged by USDOJ w running a bankruptcy ‘foreclosure-avoidance’ scam.
Property in question just (May 2013) “sold” to current tenants. What caught my eye was 3 sizable _recent _loans (exceeding 130% LTV) made after NTS. These loans were later reconveyed (2013).
After painstaking research… story (fraud) unfolded. An individual recorded a phony reconveyance on 1st DOT (foreclosing loan) held by Detusche. The party who signed ?recon? was involved in quick buy/sells on many different Nor Cal properties, and the other party to these ?deals? was CEO of same LLC who made the 3 ‘late’ (dubious) loans. Turns out this LLC has been sued by Fidelity Nat Title for phony (shill) loan schemes and fraudulent reconveyances?for purposes of showing ‘clear title.’ Scheme may have worked as Deutsche Bank trustee cancelled (for now) trustee sale, and new buyers (tenants) I?m sure are happy… until Deutche Bank learns/shares the bad news.
Took my notes to the DA?s office and they were appreciative, but have too much on their plate to be bothered and “until we have a squawking victim”?(< not an exact quote, but that was the sentiment). Why am I not surprised ;).
"I am lien holder of the second lien. I was not informed about the trustee’s sale.? Does the trustee need to give me a notice after the sale? Is my lien got wiped out? Do they need to record any document? in additon to the Trustee’s Deed in order to wipe out my lien?
_? ? ?_1. ?Trustee is required to send Notice to junior lien holders (your are one) to the address shown as the return address for you on the recorded Deed of Trust. ?Notice has to be sent by both certified and regular mail.
? ? ?2. ?If they really didn’t notify you at the address shown on your recorded Deed of Trust, the sale is “voidable”. ?However, if you were to file a suit asking the sale be voided, you would have to allege you would be willing to pay the lender that foreclosed. ?Chances are the first lender was owed more than what the property was worth, so you wouldn’t want to do that. ?
? ? ?3. ?The recording of the Trustee’s Deed puts the world on Notice that the senior loan now owns the property and, ergo now owns the property clear on any junior liens. ??