Possibly Facing Foreclosure
I have a friend in a really bad position and need as much help as possible. They are victims of mortgage fraud and have several other issues. Here is the problem. They were initially renting their home from the original owners. In there desperate efforts to buy the house, they were taken advantage of. The were duped into believing that they were getting a new loan to buy the house when it turned out that the loan they got was a refi. They have now been in the house for three years and attempted to refinance again but found that the original owners still had mortgages on the house. The original owners have stopped paying the mortages and now the mortgage company is threatening to foreclose. My friends mortgage company says that they have first position on the house and this other mortgage company cannot foreclose. Please let me know your thoughts or if any of you would like additional information
Did they get title insurance when they bought the house?
loliver39,
Glad to meet you.
There is a good chance if I knew the address, I could find out exactly what happened.
If you do not want to post the address then there are other means to let me know what it is and I will not disclose any of this info only give you what the property records show (without names) concerning this property.
John $Cash$ Locke
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mcole,
Thank you for your kind words.
Stockpro,
Without looking at the records it would be just a guess, I am thinking there was nothing recorded when they did this so called re-finance to many variables without knowing more, but title insurance would clear this up if in truth there was a re-fi.
John $Cash$ Locke
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Thanks to all that responded.
John,
I would like to send you the property location. Is there an email address that I can send it too? Is there some type of fee involved with your looking into this?
As for title insurance, my friend was not aware of this information at the time and did not get title insurance. Of course the lender had title insurance because it was a part of the closing costs that were paid during the closing.
The original owners attempted to convey title through a quit claim deed that my friend and his wife signed. This was done at the closing of the Refi. The deed was recorded.
The interesting question is how could a refinance take place if my friend was not the original owner of the property? In addition,Why would the mortgage company allow something like this to happen? How could refi take place if there were prior liens on the title? Because this mortgage company has title insurance, does that make their loan first position on the title although the previous lien(s) were recorded before it?
I have defferred to Bill Bronchick in the past and he has always suggested flipping from an S Corp.
That said I understand that there is a way to do business from an LLC and be taxed like a corporation (Albert Aeillo).
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