What happens to the past due balance if a property i...


#1

What happens to the past due balance if a property is sold at auction? is the amount added to the wining bid amount or is it forgiven?


#2

It is added to the balance prior to auction and typically published in the Notice of Trustee Sale (our Published Bid field). These published bids are usually discounted by the lender at auction, but in any case the winning bid eliminates that loan in full. Past due amounts on loans senior to the loan sold at auction will remain outstanding.