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 2nd Trust Deed Foreclosure and Legal liability of the 1st TD?

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jilljill
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2nd Trust Deed Foreclosure and Legal liability of the 1st TD? Empty
PostSubject: 2nd Trust Deed Foreclosure and Legal liability of the 1st TD?   2nd Trust Deed Foreclosure and Legal liability of the 1st TD? Icon_minitimeTue Nov 30, 2010 1:44 am

2nd Trust Deed Foreclosure and Legal liability of the 1st TD?
I am in a 2nd Trust Deed lender position where the borrower is not paying me. If I foreclose from a 2nd trust deed perspective and no one bids at the auction I get title. If after the auction I decide I do not want to own this property and simply walk from the property, can my credit be damaged at all? I my self never signed any debt obligation notes on this property but am wondering if the mere act of foreclosing makes me legally liable for the debt of the first if I simply walk from the property,

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Trust Deed|Trust Deeds
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setback
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2nd Trust Deed Foreclosure and Legal liability of the 1st TD? Empty
PostSubject: Re: 2nd Trust Deed Foreclosure and Legal liability of the 1st TD?   2nd Trust Deed Foreclosure and Legal liability of the 1st TD? Icon_minitimeMon Feb 21, 2011 9:23 am

Generally, the purchaser at auction takes title "subject to" superior liens. This means you must pay the 1st trust deed lender if you wish to hold onto the property. If you don't pay and they foreclose, it will affect your credit because you will be person on title when they foreclose.

If you don't want it, don't foreclose on it.
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