Posted by Bud Branstetter on June 19, 1999 at 21:22:20:
John,
Here in Texas the weed liens and other fines do not get wiped out by the foreclosure. I had a problem even tracking down who in the city would know what the fine amount ended up being on a property I held a note on. They eventually send it out as a tax lien. I ended up suing for default instead of foreclosing.
Finance Co. holds First??? - Posted by Ray (Fl)
Posted by Ray (Fl) on June 16, 1999 at 20:48:08:
Hello all,
I have a situation that I have run into and need a little help. I have put an offer in on a property that has not been accepted yet but we have been back and forth w/ price. I called the realtor yesterday to find out the latest numbers only to find out that there were liens on the proerty. The property was being marketed as a foreclosure. Come to find out the owner is still living in the property. The owner and the finance co. have an aggreement that if it sells then the owner will just move out ( and I’m sure it will be in great shape). Here are the numbers.
FMV=60k
First Mtg.=42.9k
county lien=15k
Hospital bill=1k
It is obvious that this property has never been to the courthouse steps. IS is possible to buy the first for around 10-15k then foreclose on the 42.9k first? Would that wipe off the Liens? then I could own this house for the purchase cost and foreclosure costs? Am I missing something or is this doable?
Thank you for you help in advance!
Ray
Re: Finance Co. holds First??? - Posted by John Behle
Posted by John Behle on June 17, 1999 at 18:32:06:
You could buy the first and foreclose. We do that at times when a property is over encumbered with liens. They should be wiped off the property at sale, except for any priority liens like property taxes. You say the lien is to the County. What for? It may be “senior” to the finance company’s loan.
If the finance company is in a first position, I doubt they would take as low as you suggest. It can’t hurt to ask. I’ve had them discount by 75% in foreclosure situations, but usually when they are in a junior position and not planning on bidding at the sale.
Re: Finance Co. holds First??? - Posted by Ben
Posted by Ben on June 17, 1999 at 03:43:40:
The one thing you may be missing is that the county lien (probably taxes) has priority over the mortgage.
Therefore you would have to pay off the county in full
with interest, to get rid of the lien. It would not be extinguished by the foreclosure. However, if you were able to get such a deep discount on the first, it would probably still be worth it.
Re: Finance Co. holds First??? - Posted by Ray (Fl)
Posted by Ray (Fl) on June 17, 1999 at 18:42:15:
The lien is for property clean up. It was originally 2.3k and then a penalty of $50 a day that it was not paid.
Thanks for your help.
RS
Re: Finance Co. holds First??? - Posted by John Behle
Posted by John Behle on June 17, 1999 at 18:48:43:
I would doubt that that takes precedence over the finance company then, but they probably aren’t excited about the situation. Make sure you run this one by an attorney before you put money into it.
I’d get an option or purchase offer with a contingency clause to buy the first. Make that contingency clause “subject to your attorney’s review and approval”.