Do lenders ever try to confuse buyers of trustee sale propertiesz?


#1

It seems like for instance they could have an opening bid on a second disguised to look like it was the first. Has anyone ever found anything like this going on?


#2

I doubt they could do anything like that - how could a 2nd be disguised as a 1st by a Lender? The Lender holding the 2nd can foreclose just as the Lender holding the 1st, but disguising it would be tough, in my opinion. The liens should both be recorded with the County.


#3

I’ve heard stories of private lenders doing some pretty whacky things to try to dupe buyers. I’m always super cautious when it is an individual lender (or small hard money outfit) foreclosing.


#4

I thought private lenders might do that. Thanks for the info.


#5

This might happen occasionally with private lenders. Be sure and politely ask the auctioneer to read the instrument# and recording date so you can reference what loan is being sold at the trustee sale. You may want to approach the auctioneer when they ask for “qualifying bidder”, he/she will have the sale information (like the Notice of Sale or Deed of Trust) available and can reference it quickly. Good Luck.