buying at trustee auction? how to check if 1st trust deed?


#1

just helping my parents purchase a property at trustee action this Monday. The opening bid is around 800k (the loan balance looks to be around 1.4m). I called the trustee company and also checked county office for liens and tax payments. But how can you be sure that it is the 1st loan (trust deed) and not the second or third?
here is bit more info:
Trustee’s Name Recontrust Company
Mortgage Report
Recording Date
10/4/2007
1st Loan Amount
$1,430,000
Loan Type
Unknown
Type of Financing
Adjustable Rate
Borrowers Name
xxxxxxxxxx
Loan Due Date
7/1/2037
Lender Name
Bank Of America NA

Mortgage Report
Recording Date
6/20/2007
1st Loan Amount
$1,420,000
Loan Type
Unknown
Type of Financing
Adjustable Rate
Borrowers Name
xxxxxxxxxxxx
7/1/2037
Lender Name
Bank Of America NA

Mortgage Report
Recording Date
4/19/2006
1st Loan Amount
$1,400,000
Loan Type
Building or Construction Loan
Type of Financing
Adjustable Rate
Borrowers Name
xxxxxxxxxxxxxxx
Loan Due Date
4/1/2036
Lender Name
Washington Mutual Bank FA


#2

continued…

Prior Sale
Recording Date
1/5/2005
Price
$400,000
1st Loan Amount
$260,000
Buyer Name
xxxx
Seller Name
xxxx
Subdivision

Legal Description
LOT 1
Lender Name
Washington Mutual Bank FA
Document Number
2005-0022xx
Document Type
Grant Deed
Type of Sale
Full-Computed from Tax
Lot
1

Prior Sale
Recording Date
1/5/2005
Price
$400,000
Buyer Name
xxxxxxxx
Seller Name
xxxxxxx
Subdivision
xxxxxxxx
Legal Description
LOT 1
Document Number
2005-00xxxxx
Document Type
Intrafamily Transfer and Dissolution
Type of Sale
Full-Computed from Tax
Lot
1


#3

Hi Mac, You would want to first find the last full value transfer and then check all loans for reconveyances. You will want to make sure that you know which Deed of Trust is in default. You want to make sure all prior loans dated before the foreclosing Deed of Trust have been reconveyed. You will also want to check for any back property taxes since they are super senior to any lien. Remember that you are buying the lien position of the foreclosing Deed of Trust and you would still be responsible for any senior liens or loans. You can use the transaction history in ForeclosureRadar to pull copies of the legal documents. We also have a link to the county recorders website where you can check for reconveyances, subordinations, and IRS liens. Keep in mind that buying at trustee sale is a VERY risky way to purchase properties. There are no guarantees or warranties. Check out our video which will help you prepare for the sale. http://www.foreclosuretruth.com/blog/sean/video-foreclosure-auction-guide/. We also have a great checklist in our transaction history.