What is the name of your state (only U.S. law)? California
My parents just went to a property foreclosure auction this morning and bought a property for $25k. Turns out, this is a second on the property, with the primary being $162k. It appears that the primary is not in default at this time.
So what does that mean? Do they own the house? Does the holder of the primary own the house, and my parents have a modest interest in the property? We were told that if the primary forecloses, it "wipes out" the secondary, and in that event they have just lost $25k.
What are the next steps? Do we find out who holds the primary, and will they be likely to sell it to my parents? What if the person who took out the primary continues to pay and stay in good standing?
All in all, it seems like a crummy position to be in... it's an empty house that needs renovations and it seems like they need to sort out the primary before they can take possession... yes?
Thank you for any help/advice,
Gryn
My parents just went to a property foreclosure auction this morning and bought a property for $25k. Turns out, this is a second on the property, with the primary being $162k. It appears that the primary is not in default at this time.
So what does that mean? Do they own the house? Does the holder of the primary own the house, and my parents have a modest interest in the property? We were told that if the primary forecloses, it "wipes out" the secondary, and in that event they have just lost $25k.
What are the next steps? Do we find out who holds the primary, and will they be likely to sell it to my parents? What if the person who took out the primary continues to pay and stay in good standing?
All in all, it seems like a crummy position to be in... it's an empty house that needs renovations and it seems like they need to sort out the primary before they can take possession... yes?
Thank you for any help/advice,
Gryn