I have a situation which to the best of my knowledge is quite a head spinner. There is a 1st Trust Deed on a property who has currently filed a Notice of Default. There is also a 2nd Trust Deed which was taken out 12 months ago. At the time of signing the paperwork for the 2nd Trust Deed the homeowner also signed a deed in lieu of foreclosure against that 2nd trust deed. The owner of the 2nd is filing an eviction and calling the deed in lieu of foreclosure. My question is (A) There is still a 1st TD to be satisfied. (B) is this process even legal. If the holder of the 2nd TD gets the property, who would be responsible for bringing the 1st TD up to date and to continue to pay for that. Please let me know if anyone has the answer...

This one IS a head spinner. My best guess based on the info you've provided is that the 2nd TD gets the property from the homeowner, but the property is still subject to the terms of the 1st TD. And since the 1st TD has already declared a default they can proceed with a foreclosure at any time against both the homeowner and the 2nd TD.