Help - Forclosure Question - continued - Posted by Bray

Posted by JDKastrava on March 22, 1999 at 16:32:31:

Unless I am missing something I don’t see how your mother in law could lose the cabin, or why she would pay the dead beats anything. If she holds the 1st, and they haven’t paid her she should start foreclosure proceedings. The guy that lives out of state would have to bring the payments to your mother in law current,and take over the place, or he would get shut out, and she,(M.I.Law) would own the cabin again.
Just my opinion. What do you experts say?
Good Luck

Help - Forclosure Question - continued - Posted by Bray

Posted by Bray on March 22, 1999 at 11:37:06:

Here’s my question. Mother-in-law has offered these people $2,000 cash to sign the cabin over to her, the 2nd lein holder lives out of state and says he can not come to California to do anything about this mess because he has a job. These people have told mom, they want $8,000. Mom is concidering it because she beleives she could lose the cabin if she forcloses on it. She thinks if the cabin goes up for auction she will only get what is owed to her and rest will go the State of CA. She said she gets the right to bid $1 higher that the highest bidder, and thinks she will have to get a loan to do this (to pay the state?). Could this be right??? Sounds kind of like robbery to me, I thought she’d get the entire proceeds from the auction. Also, what happens to the 2nd - is he out? Does this even need to go to auction? Mom is 60, single, needs a place to live, has very little funds and needs advise desperately.

Re: Help - Forclosure Question - continued - Posted by Bud Branstetter

Posted by Bud Branstetter on March 23, 1999 at 10:26:01:

While foreclosure in Ca is different it isn’t that different. At the auction the highest bidder gets the deed. The second would be wiped out. If there is any overage it first belongs to the 2nd then the former owner.

There is a difference between ownership and possession. By buying the deed from the existing owners for the 2k you still have the 2nd to concern yourself with. See what he will take since he would be wiped out in a foreclosure. It would be best not to divulge to him that your mother wants the cabin.