Depends on what state property… - Posted by JT-IN
Posted by JT-IN on July 16, 2008 at 07:40:19:
Is located, as to the answer to some of these questions… Foreclosure is very state specific and what works one way in one state will work completely opposite elsewhere… so specifics are the key issue when talking foreclosurs. No approximates are acceptable…
Fist off it is NOT safe to assume that the earlier recorded mtg is in first place. One could surely assume that it once was in first place, but it could have been subordinated to the larger mtg when it was originated… Not likely, but it is possible… and I have seen it a number of times, so you MUST BE CERTAIN, no guess work here.
Does the 2nd get wped out…? It depends… depends on state laws and local customs even, as there are variances from county to county jurisdictions. This also depends on whether the Jr lien(s) were served notice, and proper notice… Sometimes the intention to foreclose the lien is there but the proceedure is flawed and the lien can survive the sale and still be a valid lien on the property. So it depends greatly on several variables.
Soes it matter that one bank has both loans…? Not really. Many times there are different pools (or divisions) of money that have made the mtg within an institution, and they keep seperate profit centers… so they do not look at themselves as the bank internally in many cases. Often times equity lines of credit in larger banks are looked at as installment loans by the bank, not mtgs… so they view them differently. This doesn’t change the proceedure for the discharge of the mtg at sheriff sale if done correctly, but the thinking is different within the same bank as to 1st mtgs and equity LOC, in many cases.
Your assumption that you can buy this property for slightly more than the 1st mtg and have the 2nd and all other liens removed is probably a bit optimistic; (in fat, A LOT).
Provide specific details of where the property is located and someone who is familiar with that mkt will respond. Your best move on this property is to shaddow the deal… go to the sale, watch what happens, follow it all the way thru closing and conveyance to the buyer… then ask why did things happen that way, and when you completely understand the answers, then you are ready to pull the trigger.
The fact that three Atty provide you different answers is nothing new. I go to the sheriff sales quite often… have been known as highly experienced in that field. I couldn’t even begin to count the number of times that I have had Attys who are there representing a Plaintiff in foreclosure ask me questions about the process… and some of the questions aren’t even intelligent ones… They say that there is not such thing as a stupid question… I disagree. What is a stupid question is when an Atty is there representing someone, charging a large fee, and they ask a non-Atty a question about the proceedure of what they are supposed to doing proficiently (and can’t).
This would be analogous to going to the Dr, and having the doc ask another patient what kind of diagnosis they recommend. Malpractice for sure, and that is common in the foreclosure arena by non-specialist Attys who attempt to practice outside of their field. In fact, some of them should be practicing out in the field… as a Farmer, but they might not be smart enough for that… as farming does take a fair amount of knowledge.
Advance apologies to any of the Counselors who may be reading this, as I’m sure this would not be targeted at you… you would know better.
Sorry about the rant… I guess I needed it.