Bank Foreclosure BooBoo! (Long) sorry - Posted by AWWMi.

Posted by Nate(DC) on July 09, 2002 at 21:38:43:

when it wasn’t in the original post.

Besides, I’m not sure what you mean by it anyway. Please clarify. Who is “they”? Is “they” in your first sentence the same “they” as in the second sentence?

NT

Bank Foreclosure BooBoo! (Long) sorry - Posted by AWWMi.

Posted by AWWMi. on July 09, 2002 at 17:36:23:

Found a mortgage from 1987 that a bank is holding. The bank has published a Notice of Default on the property covered by the mortgage. HOWEVER, for some reason they’re foreclosing NOT on the Present owners. They’re foreclosing on the owners Prior to them. I followed the paper trail to the warranty deed given by Previous owners to the Present owners back in 1991. According to deed, the present owners did Not assume the old mortgage. Then the trail went cold. Is this why we ALWAYS buy title insurance?
Went by Previous owners house. Yep, they sold and nope they’re not accepting payments for old house as in owner financing. WHAT THE HELL DO YOU MEAN WE’RE BEING FORECLOSED ON!!! (Good thing the dogs were in the house!) Well, the man of the house is going to give me a call to see just what the heck is up! After he gets home from work! He’s a MORTGAGOR. (Kind of like calling a fireman to let him know his house is on fire) Moral of story: Not really sure?
Hmmm

Re: Bank Foreclosure BooBoo! (Long) sorry - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 09, 2002 at 21:19:55:

AWW–(MI)--------------

I did that once, upset a person about a mortgage foreclosure situation. I accidently called the owner of a property next to the one actually in foreclosure. The properties were second homes up at Lake Tahoe. The person I talked to was very upset that I had scared him about a foreclosure on his property when he knew he was paying loyally.

Now, you probably better stop contacting former owners of propoerties that are in foreclosure.

The foreclosure sale just names the orginal borrowers as a point of reference. So every document filed in the county is using the same name. That way you can track things. The foreclosure is actually against whoever is the property owner when the auction takes place, regardless of the name in the county records.

Imagine the difficulty of tracking things if the loan was orginated by Owner Adolph. Then the property is bought by Bernard, subjcct to the loan. Here in CA, the first step of foreclosure is the notice of default. So the notice of defaults mentions Bernard, not Adolph. And Bernard then deeds the property to Cynthia. The next step of the foreclosure process is the Notice of Trustee’s Sale, which mentions the name of Cynthia. How are you going to do your research in the county records? The loan was not in the name of Bernard or Cynthia, so how do you track it down? How can you tell if the property was rescued or not? Suppose that Cynthia is a sophisticated real estate investor and sells the property to Deloris before the foreclosure sale. Doris, getting a new loan for the purchase, pays off the delinquent loan. Now the reconveyance of the loan (satisfaction on the mortgage in some states) is recorded in Deloris’s name. How do you track all this stuff with different people’s names on all of the different documents?

So, the person or organization doing the foreclosure uses the original borrower’s name on all of the foreclosure action and subsequent documents, including rescission of the notice of default, which we haven’t mentioned yet.

But, that is only to keep things straight. Actually, when the loan is truly assumed, the foreclosure will name the new owners in all the documents–the people who did a formal assumption.

Now, you have upset the former owner because you did not know what you were doing.

I recommend that you read your state law on foreclosures very carefully before you do anything more with foreclosures. See how much of it you can commit to memory.

If you are a beginner, please understand that I, and some other foreclosure investors, do NOT recommend starting out with foreclosures. There are just too many potential pitfalls. It really is an investment technique that, I feel, requires some sophistication in real estate, properties, investing, etc before getting into it. You just don’t know how much you don’t know when you are starting out.

Good Investing*******Ron Starr**************

Re: Bank Foreclosure BooBoo! (Long) sorry - Posted by Dave

Posted by Dave on July 09, 2002 at 20:47:49:

I am a mortgagor too. Every time I get a loan secured by the property I am financing, I become a mortgagor again.

Seems obvious to me… - Posted by Nate(DC)

Posted by Nate(DC) on July 09, 2002 at 19:01:31:

…what happened. The old owners sold subject-to to the new owners. What’s the big deal with that?

NT

Re: Thanks Ron…Is it - Posted by AWWMi.

Posted by AWWMi. on July 09, 2002 at 23:27:00:

safe to assume that the Present owners are actually assuming the loan made in 1987? I was told by the wife that they had land contracted which wouldn’t make sense. Maybe she meant they actually had assumed the original loan. Ok, yes, I agree don’t mess with the unknown. I think Joe K. aptly put it , messing blindly with foreclosures can make you into a road smear. Thank God the dogs were in the house. I didn’t realize how assumable loans were foreclosed on. So they go to the original mortgagor on the loan for tracking purposes only. Notices then only get posted with present owners. Valuable lesson learned !
Thanks
AW

Sorry! he’s a mortgage broker (nt) - Posted by AWWMi.

Posted by AWWMi. on July 09, 2002 at 22:52:05:

.

Re: Why for $10,000 more… - Posted by AWWMi.

Posted by AWWMi. on July 09, 2002 at 20:02:25:

than what they originally purchased it for? They’ve never received payment records from the bank in 11 years…