As this story so painfully illustrates, buying a foreclosure at a trustee’s auction on the court house steps isn’t for everyone.
Roberta and Randall Strand took $97,606 out of their paid-off house to buy a foreclosed home at a courthouse auction. Five months later, they found out they actually bought the second mortgage, and that the bank planned to foreclose on the first mortgage, leaving them out in the cold.
The family received and recorded a “trustee’s deed upon sale” in November 2009, shortly after the auction, without realizing that they had bought a second mortgage. They showed a locksmith this deed to have the house’s locks changed, which they said the auctioneer had suggested. The Strands’ daughter, Hayley Strand, and her fiance, Bryan Janbay, moved into the house, about a mile from her parents in the Santa Cruz County town of Boulder Creek.