Re: How do you find old mortgages? - Posted by JT-IN
Posted by JT-IN on October 11, 2003 at 10:22:37:
Your Question… “How would the original note “disappear” if it was in first position?”
The answer that I will give pertains to Judicial foreclosures and Mortgage States, and I get somewhat blurred from time to time as the differences in a Non-Judicial and DOT State, so in those cases I can’t verify how this would work… But back to Judicial cases…
In a foreclosure case where a Jr secured lien is foreclosing, all parties containing an interest in the property are notified via Certified or Regular Mail, considered “Service”. It is incumbent upon each entity with an interest in the property, such as the 1st mtg, or the owner, or any other lien, to respond timely to the “Complaint of Foreclosure”. If any party with an interest in the property fails to respond, (and this mtg holder would likely fail to respond), then they are forever barred from asserting an interest in the subject property; hence their interest is foreclosed. Then the sale occurs and their mtg is released from the property.
Now the Note is still a factor for the Debtor, as it is not cancelled, and the Debtor still owes the money to the Lender, but they have lost their security interest, called a Mortgage. (In your case this is called a Deed of Trust, but I realize that the rules are way different in your state).
Suggestions on acquiring a lien on a property, without this being granted by the property owner…? The only way to do so is to purchase an existing lien, then you have standing. You would purchase these via an Assignment, and then go about the business of accelerating the obligation, just as the original Creditor could have. Short of that approach, there is no real magic here…
Just the way that I view things…