First let me say that foreclosure investing has many pitfalls, and is not the place to ‘learn as you go’.
Get some good materials on the subject and LEARN LEARN LEARN to do title searches.
That said, from the info you’ve given, this is most likely an assumable mortgage being foreclosed. The date of origin was certainly in the assumable range.
The language that you have repoduced here merely says who ORIGINATED the mortgage, and that DEFAULT has occurred. The original motgagors are no longer on the hook (probably) but the legalise still has to read as you have stated. The trustee’s ability to sell the property derives from the 1978 mortgage created by the original owners, even tho they sold long ago.
“Notice of Trustee’s Sale” - Posted by Joseph Turner
Posted by Joseph Turner on May 29, 1999 at 22:21:48:
Hello,
I am a complete newbie and I have recently been learning about real estate and notes. Today I came across a “notice of trustee’s sale” in my paper and it caught my interest. It states that Wesley and Frances Anonymous are in default under a deed of trust, dated march xx, 1978. It goes on to state that the property (SFR) will be sold at auction on a certain date. The sale will be made without covenant or warranty, express or implied, regarding title, possession, encumbrances, blah blah blah, evidenced by said Deed, executed by Wesley and Frances Anonymous, husband and wife, as trustor, recorded on April xx, 1978.
The total amount of the unpaid balance of the obligation secured by the property to be sold is 33,183.18.
Okay, thanks for staying with me, my question is as follows…whats the deal with this. I checked the tax collectors office and the property is no longer owned by these people. In fact it was sold or ownership changed hands in July of 1981…there were something like 8 or 9 tenacy in commons listed…so i am thinking inheritance or something. Anyway, this property later changed ownership again and is now owned by a husband and wife as of june 1982.
I am confused. What is the deal with this property and how could it be up for auction. Can someone help me out what is going on here? How can someone who is now the owner of the home lose it to auction because of someone elses default? Furthermore, was this a wraparound? I am really confused…partly by the greed factor…i mean if there is only 33,000 due…that means there is possibly a great bargain here…assuming no other encumbrances.