Only way you can protect yourself is to foreclose before the 1st (then you would be responsible for the 1st) or make payments on the 1st so it doesn't go into foreclosure. You could wait until the 1st goes and try to win the bidding on the 1st.
When a 1st goes thru foreclosure all later deeds of trust are wiped out.
Answered by leavcast
Fri Apr 3rd 2009 at 5:10pm
Under the Anti-Deficiency Statutes set forth in the California Code of Civil Procedure (CC Sec 580(b), 580(d), 726(a)) you may be better off allowing a senior lender to foreclose, thereby extinguishing your Deed of Trust, and thereafter pursuing the Borrower under the provisions of your Note.
However the first question you should ask is whether there is equity in the property, and are you able to service the senior debt if you foreclose. Once you determine the answers to those questions we can lay out your options for you and explain the pros and cons of each. I work for an Attorney in Newport Beach and we help Trust Deed investors recover their investment after they have lost it through foreclosure. We prosecute legal actions in the Superior Court to obtain personal judgments, then pursue the enforcement of those Judgments on behalf of our Clients on a contingency basis. If you would like to discuss further please email me email@example.com
Answered by Shawn Nichols
Wed Mar 10th 2010 at 11:41am