[quote=sdrealtor]FYI the trustee sale was postponed until 11/08 due to a bankruptcy. Not sure what others are talking about but that is whats going on.[/quote]
JJGittes, I don’t belong to any “foreclosure services” to obtain the latest postponements, etc, but can relate the following:
If one “deeds” their defaulted property to a third party on the eve of trustees’ sale, this does not prevent the sale from happening. Many “equity purchasers” promise to “save” a distressed owner’s property from foreclosure but instead do nothing and hope to benefit from the use of their property while the sale is pending. I haven’t checked PACER to verify in this case but a BK filing would simply be the latest tactic Liebke could use (in the short term) to delay a trustee’s sale. Eventually, most all lenders holding defaulted trust deeds awaiting sale obtain a release of the BK court’s automatic stay from foreclosure proceedings. The Big Banks have a fleet of attorneys on staff or on contract who have no other duties but to obtain these releases as expediently as possible.
Liebke signed the defaulted-upon note(s) and he is the one who will be foreclosed on, when and if that happens. The fact that Licht has a “grant deed” from Liebke for the property is of no consequence unless Licht himself is able to cure the default plus trustee’s fees and late fees on behalf of Liebke. In any case, in this situation, the “redemption period” has passed.
In addition, 2nd and/or 3rd TD holders on a property sometimes come to a trustee’s sale to bid on that property being foreclosed on by the 1st TD holder, IF it is economically practicable for them to do so to save their positions.
sdr or UCGal (someone who subscribes to a service), please keep us posted as to the status of this trustee’s sale. This situation is interesting as I haven’t seen in a long time a defaulting trustor try an “equity purchaser” tactic, ostensibly in effort to “muddy the waters” in his (imminent) trustee’s sale.
I would be interested to know what the first sale date was and possibly the 2nd sale date (if it has already come and gone).
