How does assignment of Rents effect a sale at auction? There is an assignment of rents which is attached to what I believe is the second mortgage. Will the assignment of rents be wiped out at the auction sale of the 1st?
If you look at most “Deeds of Trust” - the full title is “Deed of Trust and Assignment of Rents”. Until a few years ago they were considered one legal document - you paid one recording fee. Then, County Recorders realized they could charge double by indexing them twice - once as a D of T, once as an Assmnt of Rents. They are still given one doc. number. It is possible to, record it as 2 separate docs. Whether recorded as one doc or as two, if in second/third position, they are junior to the first and wiped out.