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2nd lien

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navedh

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Post Posted: Sat Jun 23, 2007 4:57 pm    Post subject: 2nd lien
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Hi,
I sold a house & was a 2nd note holder. House went to forclosure, and went to auction. there were no bid on the house so first lein holder took the house. now how do i get my money?

thx
naved
Icon Mini Profile miller_st
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Post Posted: Sat Jun 23, 2007 5:33 pm    Post subject:
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Navedh,

I would like to know a few things like how much was the amount of first lien and the price that was set for the auction? Was it more than the amount of the first lien?
monrf

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Post Posted: Sat Jun 23, 2007 8:34 pm    Post subject:
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Quote:
Hi,
I sold a house & was a 2nd note holder. House went to forclosure, and went to auction. there were no bid on the house so first lein holder took the house. now how do i get my money?

thx
naved


Yes Navedh it is important to know how much price that was fixed for the house at the time auction was set for the house.
Icon Mini Profile ezmortgageloanz

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Post Posted: Sun Jun 24, 2007 4:57 pm    Post subject:
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This is just one of the dangers of being in a second lien position---unless the first lien holder feels generous, they are not obligated to give you anything...

The only way you can legally get your money is to buy out the 1st lien holder, take possession of the house and resell it (and hopefully pull out your investment at that point).

Regards,

Scott Miller

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Icon Mini Profile jenkin7
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Post Posted: Sun Jun 24, 2007 9:33 pm    Post subject:
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Hello Naved,

I agree with Scott. The first lien is not in least indebted to give you any money. So, you do need to repossess the house by buying back the house .Then you could resell the house and get the money.
Winkler

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Post Posted: Mon Jun 25, 2007 6:59 pm    Post subject:
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Quote:
The only way you can legally get your money is to buy out the 1st lien holder


Most often if is difficult for the second lien holder to buy out the first loan as the first loan amount often is substantially more than his lien amount and chances of being able to sell the house to recover the total amount is difficult. This is the reason in the first place because of which borrower goes into foreclosure instead of selling and paying off the loans.

The risk second loan holder has this type of risk to bear and because of which second loans have higher rates to cover that risk.
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