Second Lien Holder Has Correct Legal Description but First Lien Holder Does Not

[simplelaguna]

Assumption: Scenario is in California

What if a person with that was a 2nd lien holder of a property, where their trust deed was against the new legal description after a subdivision re-alignment.

The 1st lien holder had a trust deed recorded against the old legal description before the subdivision re-alignment and never updated their deed to the new legal description. They did acknowledge with signature of the new parcel map that was recorded showing the new legal descriptions.

Then the 1st lien holder foreclosed on the lot owner based on the old legal description.

What is the impact? Is is a valid foreclosure? What about the 2nd lien holder? since they were the only person with a correct legal description on their lien?

[Mr. Knowitall]

Why would the original lender have had to update anything? Are you forgetting to tell us an important detail, such as that when the subdivision was "re-aligned" the lots were refinanced in accord with the new "alignment"? If the lender was left out of the loop in this "realignment", the chain of title for the "realigned" lots will reflect their security interest.