[quote=northparkbuyer]bearishgurl, I missed your last question in my reply. According to the Web site, the opening bid was $460K.

I am fairly certain there was no second lien on the property, just a first for about $410K through BofA, $27K of which was paid back. All rough numbers.[/quote]

northparkbuyer, this means that the decedent would have only owed $383K today had the payments been kept up. Instead $460K was owing (including late charges and trustees fees). That is $50K higher than the original loan and $77K higher than what should have been remaining on the loan today had payments been kept up. This is a LOT MORE $$ than what would be owing if the payments had been FIRST discontinued AFTER the death.

My gut feeling is that the decedent took out this new loan of $460K between 2004 and 2007 (RE “bubble”), either by purchasing the property during the “bubble” or refinancing “cash-out” (I’m guessing the latter). There is NO WAY she could recover enough monthly rent from her daughter to keep up payments on a $460K loan, esp. if it was a sub-prime “NINA loan” (due to her not having the income to support it). Based on the info you posted, I believe it has been 2+ years since any payments have been made on the property.

$460K may be more than the property is worth today. In any case, I predict if the lender recovers the property after the trustees sale they will evict the tenant and market it to recoup as much of their losses as they can.