at the auction how do you know who you are paying off? the first or the second? if it is the first, is the second wiped out?


#1

If a first amount is listed how do you know if the first is who you are puying it from? If you are paying the first for the hojme at the auction, is the second wiped out?


#2

The auctioneer will typically announce the details off the sale, any disclaimers about the trustee sale as well as instrument # and recording date of the Deed of Trust being foreclosed. If they do not announce these details be sure and ask. This is the best reference if you have no access to research the debt and chain of title. A Title Officer can be very helpful with this and post-purchase issues as well. Yes, all junior liens are wiped out (with exceptions).


#3

In regard to the junior lien being wiped out, What are those exceptions?


#4

I know property taxes would be one. Also and IRS tax lien would provide the IRS the option to buy the property from you for the price you paid for 120 days. This makes it hard to re-sell the house. I think mechanics liens might be another exception, but I’m not sure about that.


#5

You will always want to do your due diligence when buying properties at trustee sale. Not only are you looking at the dates on the Deeds of Trust but you also want to check for reconveyances and subordinations. It is always best to learn how to read a chain of title and use the search engines provided by the county recorder. It is also good to have the name of a good title officer on hand. Even though they will not insure you at trustee sale it is always good to have a second set of eyes looking at the title. The auctioneer does announce the details of the sale but they give no warranties or guarantees on lien position. Junior liens are wiped out at trustee sale.