- This topic has 72 replies, 16 voices, and was last updated 16 years, 11 months ago by
lonestar2000.
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July 19, 2007 at 4:59 PM #66649July 19, 2007 at 4:59 PM #66586
gn
Participantno_such_reality,
What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest
So, is the correct thing for the 2nd lender to do is let the 1st foreclose & hope that there is enough $ after the sale to pay the 2nd lender ?
July 19, 2007 at 5:13 PM #66656El Jefe
ParticipantWhat is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest.
I suspect a judge will say tough cookies to the 2nd holder for any recourse since the 2nd failed to liquidate the property in a prompt fashion there by potentially rectifying any short fall. Essentially, the 2nd’s interest may get liquidated if they let the first foreclose.
In this case… or just about any situation where there exists a 1st and a 2nd or HELOC… the 2TD/HELOC is fully subordinate to the 1st. There would be no way that the holder of the 2nd/HELOC could sell the property independent of the 1st LH, making the holder of the 1st whole again in the process, as the outstanding lein from the 1st would show up all over any title report on the property. No insurance company would insure the title, and no bank would lend to purchase the property with the 1st lein outstanding. And the 1st TD lein is not going anywhere until they either get their money or they forclose and take posession of the property.
In the world of leinholders, the 2nd/HELOC folks really are the guys bent over the cash registers, and the holder of the 2nd/HELOC foreclosing would serve no other purpose other than puting themselves in a better position to light a fire inder the 1st leinholder in hopes of getting the house to market and sold quickly, as they sit there and watch their money evaporate as prices fall.
July 19, 2007 at 5:13 PM #66592ParticipantWhat is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest.
I suspect a judge will say tough cookies to the 2nd holder for any recourse since the 2nd failed to liquidate the property in a prompt fashion there by potentially rectifying any short fall. Essentially, the 2nd’s interest may get liquidated if they let the first foreclose.
In this case… or just about any situation where there exists a 1st and a 2nd or HELOC… the 2TD/HELOC is fully subordinate to the 1st. There would be no way that the holder of the 2nd/HELOC could sell the property independent of the 1st LH, making the holder of the 1st whole again in the process, as the outstanding lein from the 1st would show up all over any title report on the property. No insurance company would insure the title, and no bank would lend to purchase the property with the 1st lein outstanding. And the 1st TD lein is not going anywhere until they either get their money or they forclose and take posession of the property.
In the world of leinholders, the 2nd/HELOC folks really are the guys bent over the cash registers, and the holder of the 2nd/HELOC foreclosing would serve no other purpose other than puting themselves in a better position to light a fire inder the 1st leinholder in hopes of getting the house to market and sold quickly, as they sit there and watch their money evaporate as prices fall.
July 19, 2007 at 5:17 PM #66658bobby
Participant<
>>>> a couple of things come to mind about your brother.
1. zillow is notorious for overestimating values so if that’s how you expect $100K equity, you may be in for some disappointment.2. your brother may have depression or schizoaffective disorder. He may benefit from psych eval.
July 19, 2007 at 5:17 PM #66594Participant<
>>>> a couple of things come to mind about your brother.
1. zillow is notorious for overestimating values so if that’s how you expect $100K equity, you may be in for some disappointment.2. your brother may have depression or schizoaffective disorder. He may benefit from psych eval.
July 19, 2007 at 5:39 PM #66664Quietcat
ParticipantAs far as Zillow is concerned, in my neighborhood they seem to be based on the last appraisal or sale and not much more. My house is low compared to comps on Zllow, his as well. I guess the point is that I believe the comps, not Zillow . . .
July 19, 2007 at 5:39 PM #66600ParticipantAs far as Zillow is concerned, in my neighborhood they seem to be based on the last appraisal or sale and not much more. My house is low compared to comps on Zllow, his as well. I guess the point is that I believe the comps, not Zillow . . .
July 19, 2007 at 5:53 PM #66604Bugs
ParticipantThis is just a tangent: Out of curiosity, what type of business did your brother start and how did it fail?
I’m just asking in generalities; I’m not asking for specifics, nor am I fishing for something to criticize. What I’m curious about is whether his business was directly related to real estate (buying, selling, financing, improving, etc), indirectly related to real estate (goods or services largely supported by RE equity withdrawals) or completely unrelated to and independent of real estate.
Many of the businesses I see over in the business parks in the Temecula/Murietta areas are either directly related to real estate or else are indirectly related. Virtually all the motorsports and other lifestyle businesses seem to run off of equity extraction and RE wages/compensation and RE profits. There seem to be very few new businesses over there that would be unaffected from a RE downturn.
July 19, 2007 at 5:53 PM #66668ParticipantThis is just a tangent: Out of curiosity, what type of business did your brother start and how did it fail?
I’m just asking in generalities; I’m not asking for specifics, nor am I fishing for something to criticize. What I’m curious about is whether his business was directly related to real estate (buying, selling, financing, improving, etc), indirectly related to real estate (goods or services largely supported by RE equity withdrawals) or completely unrelated to and independent of real estate.
Many of the businesses I see over in the business parks in the Temecula/Murietta areas are either directly related to real estate or else are indirectly related. Virtually all the motorsports and other lifestyle businesses seem to run off of equity extraction and RE wages/compensation and RE profits. There seem to be very few new businesses over there that would be unaffected from a RE downturn.
July 19, 2007 at 6:07 PM #66672DaCounselor
Participant“So, is the correct thing for the 2nd lender to do is let the 1st foreclose & hope that there is enough $ after the sale to pay the 2nd lender ?”
_____________________________I don’t believe so. I believe if the 1st mortgage is foreclosed, the 2nd mtg will be extinguished. Not a good result for the 2nd mtg holder.
I believe the play is for the 2nd mtg to foreclose, extinguishing all junior liens, and take the property to sale. 1st position gets paid off and 2nd position takes the rest.
July 19, 2007 at 6:07 PM #66608Participant“So, is the correct thing for the 2nd lender to do is let the 1st foreclose & hope that there is enough $ after the sale to pay the 2nd lender ?”
_____________________________I don’t believe so. I believe if the 1st mortgage is foreclosed, the 2nd mtg will be extinguished. Not a good result for the 2nd mtg holder.
I believe the play is for the 2nd mtg to foreclose, extinguishing all junior liens, and take the property to sale. 1st position gets paid off and 2nd position takes the rest.
July 19, 2007 at 6:11 PM #66674ParticipantBugs,
He started his own hair salon :rolleyes: . . . Flakey customers, flakey employees, flakey owner . . .
July 19, 2007 at 6:11 PM #66610ParticipantBugs,
He started his own hair salon :rolleyes: . . . Flakey customers, flakey employees, flakey owner . . .
July 19, 2007 at 11:10 PM #66628blue_sky
ParticipantHair salon can be a great business. My brother owns one, almost no hassle and he has great employees, makes a good monthly nut off it too. On the other hand, he’s not a flake, whereas the previous owner was. She started the place with her rich husband’s money for something to do. Then she forgot to remit sales tax for a couple years…
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