Who Has The Title On The Deed??
Here is the situation:
2nd foreclosed (also had the third) county shows the second as homeowner. I called the second, they have told me both loans(2&3) have been written off and have a $0 balance. They also said it was not worth going after and no longer have title.
Does that mean the deed now belongs to the 1st mortgage co. or back to the home owner?
When I called the first, they said they must still continue with the foreclosure and that I would have to purchase the property preforeclosure from the original HO. But... does he actually have the right to sell it??? I need to go to the clerks office and see who now is listed on the deed.
the question is, 2nd had the deed from their foreclosure, if they give it up, who gets it??
Thank You, that sounds exactly correct!! And yes he does have liens on him. The only advantage preforeclosure is no competitive bidding. He owes 115 on the first and the house is worth 165-170. I wonder if he knows the second and third have been written off? I would think he is thinking there is no chance to sell prior to the sale due to his 2nd and 3rd eating up all the equity.
I believe either the first or the second(don't remember) said that the HomeOwner would still be responsible for the deficiency, not sure how that can be...[ Edited by jllaco on Date 09/24/2003 ]
start with who on first....
go to whos on title....
if its worth persuing go to tile search...
its a track down and can be tedious...
if its thats messed up ... low ball the short sale
I'm confused: did you ever figure out from the 2nd note holder if they took a deed in leiu? I dont know how they would with a first in front of them.
You need to find out how and why they are listed as the owner.Start there.
I am probably stating thisincorrectly, but the second did foreclose, I assume it is just like when I would purchase the second at the foreclosure sale, the house would now be mine, but i would be responsible for the 1st. The 2nd got it, wrote it off and handed it to the first? I'll need to do a title search.
i know of cases where the 2nd mortgage had foreclosed only to let the 1st foreclose because the 1st mortgage payoff was more than the property was worth..these things do happen every once in a while.....if thats the case see if the new owner (2nd mortgage) is willing to deed it to you for a few dollars while you try to short sell the first.....
O.k. this is probably what is going on, the 2nd/3rd have foreclosed and charged it off as a bad debt, so there mortgages should have a certificate of satisfaction or need to get the letter from them or the homeowner as to the 2/3 being satisfied or charged off. The first will now foreclose and will probably bid in theirs plus 5-10 thou. in order to cover their expense. Yes the original homeowner still owns the property for now. What a mess, but is good for you and offers an good profit if bought correctly. Stay away from the homeowner, I am sure he has other liens and judgements against him and they will become yours if you buy before the sale, wait till auction or get the liens discounted.
Good luck
Stay the course
Don
once a bank forecloses on a property, ownership changes hands.....unless you are in a right of redemption state, where the owner pays back what he owes and gets title back....this is not likely in this case because there is a 1st mortgage that is pursuing foreclosure and there are judgment liens as indicated in one of your posts, therefore the bank that foreclosed owns the house...they may have charged off the lien because they may have realized after the fact (after the foreclosure) that the property was not worth more than what the 1st mortgage was owed on.....that's why i suggested that if you can short sale the 1st mortgage the current owner (the bank that foreclosed on the 2nd mortgage) would be wiling to sell you the property for say $1000 dollars.....or else they would get nothing if the 1st foreclosed...
i just realized that you posted that the 1st is owed 115k.....and that the house is worth 165k....no chance for a short here. .the 2nd bank (owner) may buy out or pay off the 1st mortgage position....and turn around and sell the house for 165k ..you may want to offer the current owner 10,000 and assume the 1st. they may be willing to do that to get this off their hands..which means you'd be paying 125k...again highly unlikely unless you can show that the house is not worth the foundation it is sitting on...this is an reo property now....[ Edited by lp1 on Date 09/21/2003 ]
Quote:
On 2003-09-18 14:42, jllaco wrote:
Thank You, that sounds exactly correct!! And yes he does have liens on him. The only advantage preforeclosure is no competitive bidding. He owes 115 on the first and the house is worth 165-170. I wonder if he knows the second and third have been written off? I would think he is thinking there is no chance to sell prior to the sale due to his 2nd and 3rd eating up all the equity.
Wow, something is wrong with the story. Why would the 2nd and 3rd write off their judgements when there is $50K-$55K equity in the property? All this owner needs to do is wait for the sale. I would almost guarantee that the property will sell for more than what is owing on the 1st. If 2nd and 3rd have been written off, the owner will be entitled to any overbid money.