waterfront
02-15-2008, 06:35 AM
Hi all-
I went to a auction yesterday to get the lay of the land...it's not my normal line of real estate work.
This auction was for property in the District of Columbia, where the preference is for trust deeds.
Now, i thought i understood the difference between a trust deed and a mortgage. Yet, i was surprised at this auction because the majority of the properties went to the bids by then note holder.
Could someone explain to me why the note holder would have to bid on a property that i thought they already had a claim to? Or is it that the trustee has the claim and the note holder doesn't.
Any other insights into auctions would be great too...I understand the process in theory, but practice is always different.
Waterfront
I went to a auction yesterday to get the lay of the land...it's not my normal line of real estate work.
This auction was for property in the District of Columbia, where the preference is for trust deeds.
Now, i thought i understood the difference between a trust deed and a mortgage. Yet, i was surprised at this auction because the majority of the properties went to the bids by then note holder.
Could someone explain to me why the note holder would have to bid on a property that i thought they already had a claim to? Or is it that the trustee has the claim and the note holder doesn't.
Any other insights into auctions would be great too...I understand the process in theory, but practice is always different.
Waterfront