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arushi_13
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| Posted: 22 Jul 2009 at 10:52 | IP Logged
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Becker page R6-50 under " Rights of purchaser after foreclosure Sale" says :
Foreclosure sale wipes out all junior interests in the property sold.
Later under " Distribution of proceeds of sale" it says:
" Any proceeds remaining are then distributed to junior lienors in the order of priority."
Aren't both statements contradictory?
Thanks for your help.
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bryris
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| Posted: 22 Jul 2009 at 11:22 | IP Logged
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All they are saying is that any purchaser of the foreclosed property will take free of any lien on that property. However, the proceeds received from the bona fide purchaser will be used to satisfy current liens to the extent possible.
The purchaser of the property takes it free of any security interest.
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arushi_13
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| Posted: 22 Jul 2009 at 11:59 | IP Logged
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Thanks bryris. But it also goes on and says.." Buyer is subject to senior liens." I understand what is the difference between junior lien and senior lien but if buyer takes free of any SI then he should not be subject to senior liens either.
Please do correct me if I m wrong.
The exact words from Becker are:
" Foreclosure sale wipes out all junior interests in the property sold, but the buyer is subject to senior liens."
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bryris
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| Posted: 22 Jul 2009 at 12:09 | IP Logged
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Well, I am pretty sure that when dealing with real property, it is taken free of any liens.
I suppose that a personal property item could be treated differently. Subordinate would be something perfected after the exercised right was perfected. Thus, earlier perfected interests could still exercise their rights against the collateral. I am not too sure.
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arushi_13
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| Posted: 22 Jul 2009 at 17:32 | IP Logged
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Thanks a lot bryris.
You will do AWESOME so don't be scared.:-) Be sure to get a good night sleep even though it might seem miles away.:)
GOOD LUCK!!!
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