How can this be legal? - Posted by Z.H.
Posted by Z.H. on October 23, 2003 at 18:24:04:
Here’s a strange situation that has me baffled.
Found 2 notices of trustee’s sale for the same property from two different lenders.
One has the auction sale scheduled for Dec 30th and the other one for Dec. 31st 2003.
There is also a Fed Tax Lien and an HOA lien. (total $15K combined)
The house is worth about $800K. Tax assessed at $650K.
First lender is trying to foreclose on the original $400K loan from 1998 when the house was first purchased. However this is not the original lender. They bought the note from the original lender a year after the purchase when the owner fell behind in payments and was facing a possible foreclosure. That foreclosure was cancelled after the note was bought by these guys, and now they are the ones trying to foreclose.
The second one is trying to foreclose on a $75K loan issued in 2000.
I always thought that if the first one forecloses, the other ones get wiped out.
So what am I missing? What could possibly be going on that something like this could happen?
Thanks in advance,