Foreclosure University

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Jarad

The bank for the second mortgage is listed as the owner of the home. How is this possible?

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Question: I have an interesting situation, the house I want to invest in appears to have a first and second mortgage. It appears the owners have already left. The second mortgage has already foreclosed and the 1st mortgage doesn’t go to auction until later. The bank for the second mortgage is listed as the owner of the home. How is this possible?

Also, since the first mortgage hasn’t foreclosed yet and the second mortgage has is it possible to make an offer to the first mortgage and if accepted own the property even though the 2nd is shown as owning the house on the county assesor website?
Thank you

Land Contract-Seller Not Paying Bank-Foreclosure Letter on Door

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Question:  We purchased an extremely run down (non livable) house last November on land contract. We had the land contract drawn up by a real estate lawyer, added our name to register of deeds, etc.

After 9 mos of my husband and I renovating the home to livable conditions, we moved in 3 months ago. We invested over $25,000 into this home during the 9 mos renovation period.

This week we came home and found a bank foreclosure letter on the door in the name of the person we purchased from with an auction date in less than 1 month.

Do we, as the land contract owners, have any higher priority in purchasing this home when it goes up for auction? Does anyone know if there is anything that can be done?

 

Answer: 

Hi: Sorry to hear of your troubles. First and foremost, no, you don’t have any more priority at the auction then the next guy… in fact the auction can be like the mob if you’re careful.  It’s not place to mess around if you’ve never done it before.  What you can do if you have not filed a lien on the property at the county, you might consider that. It will cloud the title and hopefully stall anyone from getting clear title placing a bid in front of you(You will want to document the repairs as well with photos- before and after- and receipts for repairs/renovations).

Get in touch if you haven’t with the lender and make a direct cash purchase OR do a refi NOT a purchase. If there are seasoning issues with the current land contract -ask for an exception based on the current craziness. With equity in the property and decent credit the lender would be crazy to let this property to go to sheriff sale in the current market especially if your land contract is for a purchase price higher than the old payoff of current mortgage now in foreclosure- that could be your leverage.  Consult a real estate attorney for specifics on law. If you need a possible hard money lender to help you close the deal, feel free to contact me.(There might be a short sale opportunity here as well- but that might be throwing more mud on the wall)….

I am the third lien holder of a house. The second holder is foreclosing on the house. will I be able to get what is owed me after foreclosure sale?

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Question: I am the third lien holder of a house. The second holder is foreclosing on the house. will I be able to get what is owed me after foreclosure sale?

Answer: -Based on Lien Priority those senior to you always get paid first. So in order for you to get paid, the bid amount must be enough to pay off any senior lien holders. Once they are paid off, you will be next in line to get paid. So it really depends on the bid amount whether you’ll get paid or not.

I curently have a mortage on a Mobile home. What happens when I can’t pay them anymore?

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Question: I currently have a mortgage on a Mobile home. I also have to pay a lot fee & flood insurance, along with reg. homeowners ins. and everything else, I just can’t do it anymore. The manager of this park doesn’t seem to want to help me with a hardship case. I don’t see a way out. What happens when I can’t pay them anymore?

Answer: – Well, that’s simple. If you can’t pay, then you probably should look for a different spot to park your mobile home or you could look for roommates to help you pay the lot fee if you’re not married or see if there is work you can do on the side (maintenence) for the mobile home park so your lot fee is waved each month.

I have 2 homes in Florida. If I have to let the one house go, can Countrywide come after my life savings. Will they put a judgement on me?

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Question: I have 2 homes in Florida. My primary residence has a very high payment because our other house never sold. I am having a hard time making the payments. My job of almost 20 yrs was outsourced over seas. I am working a temp job until February. If I have to let the house go, can Countrywide come after my life savings. Will they put a judgement on me?

Answer: -More than likely the loan was created with the home being sufficient collateral, so in the event you couldn’t pay, the loan company would take the house. So they can’t come after your life savings. However, they can come after you with a deficiency judgment which is the difference between what you borrowed and what you sold it for. If filed, then yes you would have to pay them what the difference is. This is more common in mortgage states. You can see what what your states primary security instrument is and research the laws for your state.

Arizonas (anti-deficiency state) law when foreclosed on

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Question: I have a home in Arizona [anti-deficiency state] that was purchased with an 80/20 loan. I have never refinanced the loans. We were in the process of negotiating a short sale, got approval from the first [with Country Wide] and they agreed to pay the 2nd [Citi] $3k, when we went back to Citi to get final approval we discovered that they charged off the 2nd and sold the loan to a subsidiary which has now turned it over to an attorney that claims they are going to file a deficiency judgement against me and collect the debt. They claim that since it was a second mortgage and it was charged off that they can do this. It was a second but it was a “purchase money” loan. Can they come after me for the deficiency?