Posted by Kristin Stallworth on November 26, 1998 at 20:16:22:
I’ve been buying at auction in Houston for two years now, so here’s what I can tell you.
As long as we are discussing a mortgage foreclosure and not a tax lien foreclosure:
Regardless of whether the Jr. Lienholders are notified, they will be wiped out at the auction, provided that neither is a taxing authority or IRS lien.
The junior lienholders have the option of bidding at the auction to protect their interest, as any overage can be applied for by them (through the courts)after the auction.
The overage will be parceled out in the order of filing date, as long as all secondary lienholders file their notice of interest with the court.
What county are you in, by the way?
Hope this helps… if you need anything else, title curity is my specialty, so I’ll be glad to help.
Happy Thanksgiving, all!