IndyMac Auction Question


#1

Hi,?thanks ahead for answering this question. ? Foreclosureradar says that there is an auction coming up 2/23/09. ? According to “Transaction History” and “Foreclosure Stage” the 1st loan dated 04/06/05 by the amount of about $100k by Indymac is not foreclosing but it’s the loan dated the same 04/06/05?date of the amount of about $500k by the same bank Indymac that is foreclosing. The $500k loan doc. number is greater by 1 digit though it has the same date. ? If I bid and win. Do I have to pay the “1st loan” of $100k off to Indymac when it’s Indymac foreclosing on its larger loan?


#2

I’d be really careful on this. First be sure to read our disclaimer if you haven’t already. When we say a loan is a 1st or a 2nd it is a computer generated guess. Those guesses are right fairly often and are really useful for searching out deals - BUT - they can not be relied on for making purchases.
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While I have not looked at the particular property, it is possible that the lender may have made a mistake and filed the 1st and 2nd out of order. If it was the intended 2nd (recorded as 1st) going to sale that kind of mistake can result in the deal of the year as you might pick up the house free and clear of the $500k loan for just $100k. But in this case it likely works against you - if it is as you say then yes, you would still owe the $100k.