Why does a property have 2 auction dates scheduled?

Submitted by Lauren from CA - 03/14/2010 - 9:53pm

I noticed a property that is going to auction twice. Once for around 600k on one day & then about 3 days later it is scheduled for around 7k. Why is this?

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Comments

Submitted by Sean - 03/14/2010 - 11:56pm

It is quite possible to have more than one loan in foreclosure on a given property at the same time. In this case I'd guess the $600k loan was the first mortgage, and the $7k was for a homeowners association lien.

The HOA lien is likely junior to the first mortgage, so if you were to buy it at trustee sale you would still owe the first mortgage. Conversely if you were to buy the first mortgage, the HOA lien would likely be wiped out (again assuming it is junior).

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