The Trustee Sale Thread - Califoria Specific

[quote author="graphrix" date=1251738119][quote author="freedomCM" date=1251608358]I thought that mechanic liens were attached to the property, and so survived foreclosure? Is this not true in CA?





Thanks for your insight!</blockquote>


I had to double check, but this is what <a href="http://www.foreclosureforum.com/mb/messages/20049.html">I found searching ForeclosureForum with a response from Ward himself</a>:

<blockquote>

Newer to this, first one I'm watching that has a bunch of mechanics liens attached. 4 in total, different contractors, all are recorded later than the foreclosing lenders lien but I'm not sure if they are wiped off or I have to take care of them if I buy it. Anyone know or had experience with this?</blockquote>
<blockquote>

Linda,



All recorded liens that are junior to a foreclosing lien are wiped off the title of the property upon the foreclosure auction of the senior lien.





--------Ward--------</blockquote>


So... while it is not legal advice, Ward is the foreclosure guru, and I would take his word that the mechanic liens go bye bye, just like a second HELOC lien.</blockquote>
And delinquent HOA liens also go bye-bye?
 
[quote author="usctrojanman29" date=1251900509]And delinquent HOA liens also go bye-bye?</blockquote>


Yup. I heard from a board member of an HOA in Irvine that they are SOL when it comes to collecting. HOAs are a junior lien, and firsts come first, everything after gets screwed after a foreclosure.
 
[quote author="graphrix" date=1251903895][quote author="usctrojanman29" date=1251900509]And delinquent HOA liens also go bye-bye?</blockquote>


Yup. I heard from a board member of an HOA in Irvine that they are SOL when it comes to collecting. HOAs are a junior lien, and first come first, everything after gets screwed after a foreclosure.</blockquote>
Gotcha...so it sounds like the only things to worry about is unpaid property taxes with these foreclosures.
 
[quote author="gambit44" date=1252765831]Anyone know how to check for irs or other type of tax liens on a property going to trustee sale?</blockquote>
You can go to the County Recorder's Office and pull these things up. A prelim title report will also have that information.
 
[quote author="xoneinax" date=1251852206]To correctly get rid of a Federal or State Income tax lien, what forms must be filed ?</blockquote>
I'm curious as well. There's a Woodbury property that is going to auction that has State and Federal tax liens.
 
Okay, here is what I have found. Now, I am not 100% certain about this, and if you are dead serious about purchasing a home at the foreclosure auction you should consult a RE attorney to be certain.



As long as the liens are junior to the 1st mortgage lien that is foreclosing: i.e. The mortgage was recorded in 2006 but the tax lien was recorded in 2007 it should be wiped out just like any other junior lien. If it was recorded before, just don't buy the property, it will be a colossal PITA to fix it, and you might have to pay all or some of it.



A state lien that is junior is wiped out immediately after the trustees sale.



A Fed tax lien that is junior is wiped out after the 120 right or redemption period. If the IRS contacts you within the 120 days, you might have to negotiate the lien with them. From what I have read, most just wait out the 120 day ROR, and then sell the property. If you are not selling the property, then after the 120 ROR you would need to contact the IRS to verify it has been removed.



IMHO, I would just avoid any house with a tax lien. Sounds like too much trouble to me, and there are plenty of other opportunities out there.



A property tax lien is senior to everyone but gawd himself.
 
I could be wrong on this, but I have heard very different things.





I think that tax liens always take precedence. tax liens always win. you will pay them no matter what if its on the property... thats what i think.



I also think HOA liens always win.



Not sure though
 
[quote author="LoudRoar" date=1253018053]I could be wrong on this, but I have heard very different things.





I think that tax liens always take precedence. tax liens always win. you will pay them no matter what if its on the property... thats what i think.



I also think HOA liens always win.



Not sure though</blockquote>


Property taxes yes. Income taxes no, as long as they are junior.



HOAs are SOL. I know, because I was corrected by someone who would know by nature of their job, and because he is on the HOA board and has been SOL on collecting on foreclosed homes in his HOA.
 
[quote author="graphrix" date=1253019410][quote author="LoudRoar" date=1253018053]I could be wrong on this, but I have heard very different things.





I think that tax liens always take precedence. tax liens always win. you will pay them no matter what if its on the property... thats what i think.



I also think HOA liens always win.



Not sure though</blockquote>


Property taxes yes. Income taxes no, as long as they are junior.



HOAs are SOL. I know, because I was corrected by someone who would know by nature of their job, and because he is on the HOA board and has been SOL on collecting on foreclosed homes in his HOA.</blockquote>


in california?



i always thought hoa's were more powerful than bush
 
[quote author="LoudRoar" date=1253019681]in california?



i always thought hoa's were more powerful than bush</blockquote>


Yup, in CA. The person I mention is in Irvine specifically. HOA liens are junior to the first mortgage. First comes first, everyone after suffers the worst.
 
I was kind of surprised no one put a bid in on 15505 Orchid (Columbus Grove with Tustin addy) at $765,000.01. You could blow that out for around $870k-$900k.
 
[quote author="USCTrojanCPA" date=1253020747]I was kind of surprised no one put a bid in on 15505 Orchid (Columbus Grove with Tustin addy) at $765,000.01. You could blow that out for around $870k-$900k.</blockquote>


There have been a lot of sales lately. Capital is getting tied up. Either that, or there is something wrong with that house only a pro would know.



Did you see the house in Yorba Linda that sold for less than half of the $2M that was owed? Oh... and the one on the island that went back to the bank for less than half of what they paid in 06? LOL! Who said the high end was immune is eating crow right now. In fact, it has totally shifted away from Anaheim, SA, and the other not so great areas to the nicer areas. There were two in Laguna Niguel again today.
 
[quote author="graphrix" date=1253021485][quote author="USCTrojanCPA" date=1253020747]I was kind of surprised no one put a bid in on 15505 Orchid (Columbus Grove with Tustin addy) at $765,000.01. You could blow that out for around $870k-$900k.</blockquote>


There have been a lot of sales lately. Capital is getting tied up. Either that, or there is something wrong with that house only a pro would know.



Did you see the house in Yorba Linda that sold for less than half of the $2M that was owed? Oh... and the one on the island that went back to the bank for less than half of what they paid in 06? LOL! Who said the high end was immune is eating crow right now. In fact, it has totally shifted away from Anaheim, SA, and the other not so great areas to the nicer areas. There were two in Laguna Niguel again today.</blockquote>
Orchid was listed for sale and it was in pending status (someone better let the listing agent know they are SOL..haha) and the property looked in good condition with some decent upgrades. Yeah, I saw the Yorba Linda property get sold...what do you think it gets flipped for (I'm not too familiar with the Yorba Linda market)? I'm gonna be heading out to the Placentia courthouse on Wednesday if you want to join me. Btw, is that Budha guy the asian guy who wears the snake skin boots and cowboy belt buckle?
 
[quote author="USCTrojanCPA" date=1253023166]Orchid was listed for sale and it was in pending status (someone better let the listing agent know they are SOL..haha) and the property looked in good condition with some decent upgrades. Yeah, I saw the Yorba Linda property get sold...what do you think it gets flipped for (I'm not too familiar with the Yorba Linda market)? I'm gonna be heading out to the Placentia courthouse on Wednesday if you want to join me. Btw, is that Budha guy the asian guy who wears the snake skin boots and cowboy belt buckle?</blockquote>


Capital might be getting tied up. I do know that most of the pros won't touch CS or CG. Anyone who has bought there has been an amateur, and they have had issues selling the homes. See 78 Fringe Tree.



The home in YL should sell for high of $1.4M, and easily at $1.2M. It is a monster of a house.



I will see if I can join you at the Placentia auction. There is a boatload of Irvine homes that day. Plus, it will be interesting to see if <a href="http://www.zillow.com/homedetails/8224-E-Hillsdale-Dr-Orange-CA-92869/25512934_zpid/">this place in Orange goes up.</a> Too bad many will get postponed.



No, that is not Buddha, he is much more subtle than that.
 
[quote author="graphrix" date=1253024921][quote author="USCTrojanCPA" date=1253023166]Orchid was listed for sale and it was in pending status (someone better let the listing agent know they are SOL..haha) and the property looked in good condition with some decent upgrades. Yeah, I saw the Yorba Linda property get sold...what do you think it gets flipped for (I'm not too familiar with the Yorba Linda market)? I'm gonna be heading out to the Placentia courthouse on Wednesday if you want to join me. Btw, is that Budha guy the asian guy who wears the snake skin boots and cowboy belt buckle?</blockquote>


Capital might be getting tied up. I do know that most of the pros won't touch CS or CG. Anyone who has bought there has been an amateur, and they have had issues selling the homes. See 78 Fringe Tree.



The home in YL should sell for high of $1.4M, and easily at $1.2M. It is a monster of a house.



I will see if I can join you at the Placentia auction. There is a boatload of Irvine homes that day. Plus, it will be interesting to see if <a href="http://www.zillow.com/homedetails/8224-E-Hillsdale-Dr-Orange-CA-92869/25512934_zpid/">this place in Orange goes up.</a> Too bad many will get postponed.



No, that is not Buddha, he is much more subtle than that.</blockquote>
Those guys that picked up 26 Desert Willow for $742,500 back in April just sold the property for $920k. But yeah, I wouldn't touch Columbus Square or Tustin Fields unless it was significantly under $200/sf. With Columbus Grove, I'd only pick something up if I did a lot of homework and ONLY if it was an SFR.



There's some interesting Irvine properties (including a few Northwood II ones) that are going off in Placentia on Wednesday and then might head over to the Orange courthouse since it starts at 3pm. The Placentia auction that starts at 10am should be finished by 2-3pm, right?
 
[quote author="USCTrojanCPA" date=1253025853]Those guys that picked up 26 Desert Willow for $742,500 back in April just sold the property for $920k. But yeah, I wouldn't touch Columbus Square or Tustin Fields unless it was significantly under $200/sf. With Columbus Grove, I'd only pick something up if I did a lot of homework and ONLY if it was an SFR.</blockquote>


That was a good one. I don't remember who bought it, but IRCC it was a pro. At that price it makes sense.



<blockquote>There's some interesting Irvine properties (including a few Northwood II ones) that are going off in Placentia on Wednesday and then might head over to the Orange courthouse since it starts at 3pm. The Placentia auction that starts at 10am should be finished by 2-3pm, right?</blockquote>


There are two in Orange, one at 9AM and one at 3PM. Not sure if it would be worth it, unless there is something good, and it doesn't look like it other than 65 Bamboo with the owner being in Fraudera Ranch. You should be able to make it over to the 12PM SA auction though, or at least catch the 3PM auction there. Unless there is a delay in the auctioneer getting the info, then it should be over in time to hit up the 12PM SA auction.
 
[quote author="graphrix" date=1253027933][quote author="USCTrojanCPA" date=1253025853]Those guys that picked up 26 Desert Willow for $742,500 back in April just sold the property for $920k. But yeah, I wouldn't touch Columbus Square or Tustin Fields unless it was significantly under $200/sf. With Columbus Grove, I'd only pick something up if I did a lot of homework and ONLY if it was an SFR.</blockquote>


That was a good one. I don't remember who bought it, but IRCC it was a pro. At that price it makes sense.



<blockquote>There's some interesting Irvine properties (including a few Northwood II ones) that are going off in Placentia on Wednesday and then might head over to the Orange courthouse since it starts at 3pm. The Placentia auction that starts at 10am should be finished by 2-3pm, right?</blockquote>


There are two in Orange, one at 9AM and one at 3PM. Not sure if it would be worth it, unless there is something good, and it doesn't look like it other than 65 Bamboo with the owner being in Fraudera Ranch. You should be able to make it over to the 12PM SA auction though, or at least catch the 3PM auction there. Unless there is a delay in the auctioneer getting the info, then it should be over in time to hit up the 12PM SA auction.</blockquote>
Cool, then I'll probably see you over in SA on Wednesday.
 
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