2nd Trust Deed Foreclosure

[rporter79]

What is the name of your state (only U.S. law)? California

I own a second trust deed on a single family residence. The borrower on the second hasn’t paid in several months, however the borrower is current on the first trust deed with the bank. Is it possible for me to foreclose on the second trust deed and take over the borrower’s position on the first trust deed and continue making the payments?

[FlyingRon]

You can foreclose on the property and then bid like everyone else on the property. If you bid to an amount high enough to clear both notes, you'll either end up owning both property (you'll have to find a way to finance the part that will go to the senior lienholder) or someone will bid enough to pay you both off ( you should be happy).

The option to do what you are trying to do is to see if you can work a deal with the senior lienholder to allow a short sale to you in lieu of the foreclosure (of course, it would take consent of the borrower).