2nd Mortgage Into Senior Lien- Sheriff Sale- Ohio
I reviewed the title for a property I'm interested in that is going to Sheriff's Sale. The property has a second mortgage (junior lien) from '91 that filed a "Certificate of Judgement" in civil court in 2001. A new mortgage was aquired that didn't pay off the 91 mortgage in 99.
1)Is the 2nd Mortgage from 91 a senior lien now since it is the oldest?
2)What was the purpose of the Certificate of Judgement for the '91 mortgage? The mortgage already was a lien.
3)The mortgage from '99 is forclosing. If the '91 mortgage is senior, then I would owe the 91 mortgage correct?
4)Does the credit history of the '91 mortgage get transferred to my credit history?
If someone could answer anyone of the questions it would be helpful, Thanks
I can help some:
1. I am not familiar with the term "certificate of judgment." It is my only thought the bank sought judgment against the borrower but never foreclosed on the property. I'm not sure why they would do this unless there is considerable equity. Even then, I've never heard of this happening before. But then again, I am no expert.
2. Since the mortgage from 91 is older than the one from 99, it is senior unless there is a subbordination agreement on file.
3. You should check the foreclosure petition and see if the 91 mortgage is named a defendant. If not, the 91 mortgage is likely senior but it could be an error.
4. The 91 mortgage, should it stay in place, will not show up on your credit history as you have no obligation to the bank. However, should you win the auction, be prepared to pay them off or they will foreclose on you.
Here are my steps before bidding at foreclosure auction:
1. Obtain a certified title report/title certificate/whatever you call them in your area.
2. Check for liens senior to the one that is foreclosing.
3. Make sure that all junior liens are NAMED in the foreclosure lawsuit and that proper service was given. If they were not named as a defendant, and/or they were not served, the lien is valid after foreclosure.
4. Make sure you know the terms and conditions of the sale prior to bidding.
GOOD LUCK
The '91 Mortgage bank was named as a defedant and served, but I would think that regardless of senior or junior standing, all lien holders should be notified. Because they are named as a defendant, is this an indication they are likely a junior lien?
The senior lien is likely notified but is not a named defendant. What does a senior lien holder have to lose if the 2nd is foreclosing???