Does the 2nd fall of ?

[REIaddicted]

let's say that Dad's house is going in to forclosure. Dad also has a 2nd and 3rd on the property.

First forclosures for $ 50,000 in rears for $5,000
2nd and 3rd are current

Property goes up for auction at the court house steps and the bank is high bidder. ( first) Does that mean the 2nd and 3rd fall off ? Why would it be different if an investor bought the first and the 2nd and 3rd fell of ?

Keep in mind the time period of the right of redemption is is still en effect. Does this mean that the 2nd and 3rd are Sh#t out of luck and the first had full rights ?

Why would that be different if a 3rd party was high bidder?

Dad is in rears for $5,000 owed was $50,000 on a $100,000 home
Bank comes in and gets the house for the morg.

Son comes in and is high bidder, Pays the $50,000
Doesn't the 2nd and 3rd fall off? Right of redemtion is never taken advange off by the owner because then the 2nd and 3rd would come in to play.

Then the son has paid the house of at $50,000 , Let's dad stay there free.... What am I missing ???????
Lisa

[REIaddicted]

had an e-mail asking me this above question!

[Dan Auito]

The 2nd and 3rd lien holders could come in and assert their claims respectively to bring the property current, being in second position would allow that lienholder first right to make up and take title before the 1st lienholder could sell at auction.

If #2 and 3 failed to show up they then would forfiet their rights. and the above would apply. I'm not a title attorney but am reasonably sure of the process.

Other opinions of course are welcome!