credit line with no reconveyance


#1

What steps do you need to take if you purchase at auction and there is a junior line of credit with no recorded reconveyance?


#2

If it is a junior lien then it is wiped out at trustee sale and there is nothing that you need to do.


#3

Thanks. I thought I read on another thread that you have to watch out for this as it still may be open and being used if the bank is different from the foreclosing beneficiary?


#4

That’s only a problem if is senior. Typically happens when someone refi’s, and escrow sends a payoff check, but they don’t close the line. If it is junior you are good to go.


#5

Sean is right. 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