Which is the real first?

There is a foreclosure on a first note of 1.8 m. Trustee said that the buyer got a second on the property from a bank which is now defunct. That lender agreed to let a “New” substitute first be put in place for 2.5 Mil but the foreclosure note on FR amount is listed at 1.8M. Who to believe? What note is really in foreclosure 1.8 or 2.5M as the trustee states?

Hi Bob,
It sounds like you would want to pull copies of both documents and review. If a bank agreed to be subordinate to another loan then there would need to be a subordination agreement. If you want to know for sure which Deed of Trust is in foreclosure you would want to pull a copy of the Notice of Default. The information regarding which Deed of Trust is in foreclosure is spelled out on the NOD. It will give you the series number and all recording information so that you can determine which loan is actually in foreclosure.