i have bought in another state, and if you have the winning bid at auction, that is it. You get clear title, no liens and back taxes are paid off. You are not obligated to the bank or anyone for any more $$.
I am getting ready to attend my first California Auction. If the property’s opening bid is $14,000, but it says property value is $250,000, and existing loans $200,000, what happens if I have the winning bid?
If there is a forum about this,please send a link, thanks and good luck to everyone.
Hi Sandy,
In CA you will want to make sure you do your research. You are buying the lien position of the foreclosing loan. If there are any senior loans or liens or past due property taxes you will be obligated to pay all of these. Buying at trustee sale in CA is very risky and should not be attempted unless you fully understand the process. We have produced a great video on buying properties at trustee sale which will show you exactly what happens and at a sale and the things you should be looking for when bidding.
http://www.foreclosuretruth.com/blog/sean/video-foreclosure-auction-guide/?
We also have a recorded webinar on on researching title under Support & Training on the the ForeclosureRadar homepage.
In your example of a $14K loan on a $250K valued property - you most certainly are junior to one or more of the other loans you mention. You take title to all loans senior to the position of the foreclosing loan.