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I made the mistake of buying a $21,000 HOA lien at a trustee sale auction on 7/5/11 in CA. What are my options? Can I cancel?

Woodland Hills, CA |

Yes, I know I made a big mistake and should have done my homework, but what done is done and I just want to know what to do now. There is a 1st mortgage (refinance) ahead of my lean (2006) for $210,000 and a second mortgage behind my lien (2010) for $49,000. The property is worth about $190,000. Will I automatically assume the $210,000 or $49,000? What can I do now? Can I go after the original owner for the $21,000?
I would not mind taking over the property's payments. I am in the 90 day redemption period now. Do I have any rights to the property after the 90 days? There is a current renter in the property and the original loan is not in foreclosure.

I already contacted the Trustee and tried to cancel my purchase, but they refused. Am I required to pay the $210,000? Or can I just walk away and loose the $21,000.

Attorney Answers 1

  1. You are pretty much stuck. You cannot cancel. Nor can you go after the original owner for the $21,000. You can just hope that the former owner of the property successfuly redeems within the 90 day redemption period.

    After the 90 days, if there is no redemption, you will take title subject to only the 1st for $210,000. The second got wiped out in the foreclosure.

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