I want to buy a property at auction. ?I find there is a credit line still open and it was recorded before the foreclosure loan.
Is the credit line considered senior loan which I have to pay if I purchase the property?
Hi Sue,
This is a problem if it’s senior. This typically happens when someone
refi’s, and escrow sends a payoff check, but they don’t close the line. ?Here are a couple threads from some similar discussions that may offer you some good information:
You only need to worry about a senior un-reconveyed HELOC.
You can access the original thread here: http://www.foreclosureradar.com/forum/buyers-and-investors/buying-auction/re-liens-prior-previous-transfer-ownership
? ? As Patricia said, this is not all that unusual. ? ?You would have to clear that senior loan. ?It is possible it was paid off and no recon was recorded. ? Unless you can somehow find out the status, stay away.