Question

We have a 1st mortgage with a balance of $250,000 with $15,000 in arrears. This would include all back payments, late fees, attorney fees and all the other fees that have been tacked on by the mortgage lender. This was recorded 6-20-1999. We have a 2nd with a balance of $60,000 with $5000 in arrears. Again this includes the back payments and fees. This was recorded 7-21-1999, We have two judgment liens. One with Citibank for $2000 recorded 3-2-13, and one with Amex for $4000 recorded 4-2-13. We have a $6000 IRS tax lien recorded 10-20-14. And finally, we have $5000 in ad valorem property taxes recorded 2-11-15. The 1st mortgage is foreclosing-what is the opening bid at the auction? The property is worth $300,000 to $320,000. 1. What should 1st mortgage bid to protect its interest? 2. What amount, if any, should 2nd mortgage bid to protect its interest? 3. What happens to IRS lien upon foreclosure? 4. What happens to the Citi and Amex liens upon foreclosure?

Answer 1

1. The 1st mortgage bid should be above dollar 282000 in this way it will secure its intrest of 265000 and two judgment lien allong with compulsory government tax of IRS and property tax

2.The 2nd mortgagee should ,if possible ,try for bid above 347000 dollars in order to protect it's interest.

3.IRS lien will be cleared by the amount received from the auction amount as it is government tax and is liable to be cleared first.

4.citi and amex lien would also be cleared from the auction amount received before clearing of mortgagee amount as it is court order it will get precedence over mortgagee.