allenfrisco
Junior Member
What is the name of your state? Texas
Q: Can trustee combine 1st and 2nd lien when only foreclosing on 1st lien
COMPLAINT: Cathy Lee substitute trustee conducted foreclosure auction improperly of above mentioned property on Tuesday 5th February 2008 at Collin County Court House in violation with Texas State statutes.
Original Amount of First Lien $640,000 with unpaid balance of $627,720 second lien with same lender was $160,000.. She started the bid at $734,000 or thereabouts. When questioned by the bidder with cashier’s checks in hand for $680,000 why the bid was so high, bidder was informed that she was instructed to bid for $734,000 or thereabouts. It appears the lender/substitute trustee combined the 1st and 2nd liens in violation of the Texas Statute.
As per Texas Statutes the financial goal is the recovery of the principle loan balance (First Lien), accrued interest, late fees, penalties, taxes paid on behalf of the property owner, court costs and attorneys' fees. In Texas, the laws are written so that the lender can only attempt to recover these widely accepted standard losses.
Q: Can trustee combine 1st and 2nd lien when only foreclosing on 1st lien
COMPLAINT: Cathy Lee substitute trustee conducted foreclosure auction improperly of above mentioned property on Tuesday 5th February 2008 at Collin County Court House in violation with Texas State statutes.
Original Amount of First Lien $640,000 with unpaid balance of $627,720 second lien with same lender was $160,000.. She started the bid at $734,000 or thereabouts. When questioned by the bidder with cashier’s checks in hand for $680,000 why the bid was so high, bidder was informed that she was instructed to bid for $734,000 or thereabouts. It appears the lender/substitute trustee combined the 1st and 2nd liens in violation of the Texas Statute.
As per Texas Statutes the financial goal is the recovery of the principle loan balance (First Lien), accrued interest, late fees, penalties, taxes paid on behalf of the property owner, court costs and attorneys' fees. In Texas, the laws are written so that the lender can only attempt to recover these widely accepted standard losses.