I am following a house I want to buy at a trustee auction. The preliminary title report says Washington Mutual has a deed of trust, secured by the property, owing $500,000. The same bank has a second loan for $250,000, which says “THE ABOVE DEED OF TRUST ?SECURES AN EQUITY LINE OR OTHER REVOLVING LINE OF CREDIT”.?
The trustee posted a minimum bid amount of $750,000. Isn’t the line of credit loan supposed to be wiped out by the auction? Trustee won’t discuss it.