What happens after sell?

[jb1997]

This is an excerpt from county records:

TRUSTEE'S DEED UPON SALE

The undersigned grantor declares:
1) The Grantee herein was the foreclosing beneficiary.
2) The amount of the unpaid debt together with costs was .................. $XXX,XXX.XX
3) The amount paid by the grantee at the trustee sale was ................... $XXX,XXX.XX
4) The documentary transfer tax is .................................................. ..... $0.00
5) The city tax is .................................................. ....................... ......... $0.00
6) Said property is in XXXXXX
and XXXXX XXXXXX XXXXXXXX (herein called Trustee), as the duly appointed Trustee under the Deed of Trust hereinafter described, does hereby grant and convey, but without covenant or warranty, express or implied, to XXXXX XXXXXXXX XXXXXXX XXXXXXX XXXXXXX (herein called Grantee), all of it’s right, title and interest in and to that certain property situated in the County of XXXX, State of California, described as follows:

Does this release our liability of the property?

[justbroke]

"does hereby grant and convey..." means it has been conveyed. In other words, it's not yours anymore. If that is what's recorded in the County Records. It probably won't record as a Warranty Deed, but certainly would be recorded.

[currerbell]

If you are facing foreclosure and eviction, I strongly recommend that you try to make contact with your lender and discuss your options. Unfortunately, in many situations (giant lender, repacked loan, etc) this will not be an option. But, if your lender is a CU and/or local, you may very well be able to communicate.

If you can, go to the sale so that you will know who purchases and for what amount. This is good to know in case the lender files a deficiency action. Also good to know so that you can coordinate your exit with the new owner. And just so you know, the attorney conducting the sale will likely know nothing about the loan/note/DOT and won't have any authority to do anything. Sometimes they are just locals called in that morning and *really* have no clue.

Once the property is sold, the new owner will have to evict you if you are still there. This costs money, so if you can come to an agreement and show good faith, they may be willing to allow additional time. If they have already foreclosed and the lender has bought the property, they will commence eviction/unlawful detainer proceedings pretty quickly.

New owner will file the eviction/unlawful detainer. You will get served. Your court date will come. If you were timely served, you must appear or a default will be granted. If you were not timely served, the case will have to be reset (check your local/state rules and statutes for time, service, etc requirement). At the hearing, you can likely request a continuance and get it granted over objections (again, check your state's stats for continuances or simply call the clerk and ask), which will give you some more time. While you are at court, ask the attorney about time to get out. You may even consider stating that you will be willing to evacuate in a timely and orderly fashion if they do not record it as an eviction. Again, check your local info.

And justbroke is correct. Foreclosure sales will not generally give a GWD (gen warranty deed) because the seller is transferring subject to whatever liens, etc are on the property and does not covenant that title is good and clear.

[feelingnutsy]

In other words---a HELOC that remains on the deed could cause
a delay in transferring the deed from owner's name to REO bank?

[currerbell]

Well, in a regular purchase where the purchaser wanted a GWD and the seller transferred with the usual covenants of title, maybe. But in a foreclosure and sale, I don't think the HELOC would keep the trustee from deeding the property to the purchaser, since those deeds (to my knowledge) are *not* GWD but are "Trustee's Deeds" (or whatever your jurisdiction calls it) that explicitly transfer without covenants and warranties and subject to whatever liens are outstanding.

Of course, all of this depends on many things, the terms of the note, whether your state is title or lien theory, whether your state is judicial foreclosures only, etc. But no, generally speaking, I would not think that (in a title theory state, at least) a pre-existing HELOC would prevent transfer of title in a foreclosure sale by trustee. I am assuming the HELOC was recorded after the note?

[feelingnutsy]

Hey---currerbell---yes to your question---and GWD?