Underlying lienholders

[Souix]

What is the name of your state? Oregon

I am currently helping a client who is facing foreclosure. Their property is going to sale mid July on the courthouse steps. After reviewing their preliminary title report, it shows 3 or 4 liens in junior position to the first TD. The liens total about $86,000 not including the perdiem that is accruing on a daily basis.

My question is, when the house is sold at the courthouse, what happens to those junior liens if there is not enough money from the sale to pay them? Do they just go away? Or do they attach to the borrower's other assets?

also,

If no one bids on the home and the bank takes it back, the 1st TD turns back to zero, but what happens to those liens?

 

[HomeGuru]

What is the name of your state? Oregon

I am currently helping a client who is facing foreclosure. Their property is going to sale mid July on the courthouse steps. After reviewing their preliminary title report, it shows 3 or 4 liens in junior position to the first TD. The liens total about $86,000 not including the perdiem that is accruing on a daily basis.

My question is, when the house is sold at the courthouse, what happens to those junior liens if there is not enough money from the sale to pay them?

**A: once the court confirms the sale and closing occurs, the "juniors" in this case would be wiped off title.
***********

Do they just go away?

**A: no, the creditors have a legal right to collect via other means.
*********
Or do they attach to the borrower's other assets?

**A: possibly, depending upon their actions take to pursue collection.
********

also,

If no one bids on the home and the bank takes it back, the 1st TD turns back to zero, but what happens to those liens?

**A: same as above.

 

[Souix]

Ok, thank you H.Guru. Have a great holiday!

 

[HomeGuru]

You too my dear.