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LawTalk
LawTalk, Attorney
Category: CA Real Estate
Satisfied Customers: 35406
Experience:  I have nearly three decades of legal experience, including Real Estate Law, and have held a Real Estate Broker's License.
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I am in default on my second equity loan on my primary

Customer Question

I am in default on my second equity loan on my primary residence, but fully paid up on the first loan, property taxes & homeowners insurance. The second equity loan (wells fargo) has my house up for auction in just 3 days. Can Wells Fargo sell my house from under me? I was also told that I would still have to pay the first off once it's sold by the second lender. Is this true? My property is in Los Angeles CA.
Submitted: 2 months ago.
Category: CA Real Estate
Expert:  LawTalk replied 2 months ago.

Good morning Lance,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Your fears are well supported by the law. If the second note holder forecloses on the property, when it is sold at auction as is required under the law, the first mortgage must be paid in full before the second note holder can collect a penny, after the first is paid in full, anything left over is available to the second note holder to cover the debt, penalties, interest and legal fees. Only if there is any money left from the sale after both the first and second note have been paid would you be entitled to the overage of the sale price.

If the first mortgage is not fully paid by the foreclosure sale, then the first mortgage note holder would still be allowed to civilly sue you for any money that remains owed after the sale prices is paid to them.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

Customer: replied 2 months ago.
Is there anything i can do to stop the sale in just 3 days
Expert:  LawTalk replied 2 months ago.

Hi Lance,

As I wrote earlier, my goal is to provide you with excellent service today. Please don't confuse excellent service with a satisfactory outcome based on your wants and desires. I can only explain the law to you---not guarantee that you will be happy with the outcome---any more than a cancer surgeon can guarantee a cure.

You asked: Is there anything i can do to stop the sale in just 3 days

Given that 3 days makes this sale Monday or Tuesday, you have ONLY 1 realistic option. Hire an attorney to prepare a bankruptcy filing for y0o that is filed Monday morning as soon as the bankruptcy court opens, and before the foreclosure sale takes place----and then get proof of the filing and automatic stay to the trustee who will be handling the auction sale.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

Expert:  LawTalk replied 2 months ago.

Hi,

It is possible that your questions and issues might be better served by an in-depth conversation with me. If you are interested, for a very nominal charge I can offer you a private phone conference.

Please know that I answered your question in good faith, providing you with the information that you asked for, and I did that with the expectation that you would act likewise and rate my service to you. If I have already provided you with the information you asked for and you have no additional questions, would you please now rate my service to you so I can be compensated for assisting you?

Thanks in advance,

Doug

Expert:  LawTalk replied 2 months ago.

Hi Lance,

Is there anything else I can assist you with today?

Doug