Deed Transfer prior to foreclosure

[Lou Veiga]

I came across a house that's going to be sold at a foreclosure auction. I did some research and found that the owner transferred the property from his name into an LLC about 2 years ago. Would that have any effect on the foreclosure? I'm assuming the bank still has the right to foreclose.

There may be numerous reasons why he would have transferred the property, but would protection from foreclosure be one of them?

[Dion DePaoli]

If a security instrument is recorded against the property the interest that instrument establishes has priority and seniority to any event happening after the lien in time. So while the deed can transfer, the interests of the mortgagee are superior to any new owner unless the lien is satisfied.

As Wayne mentioned, this happens pretty often. I had a guy who transfer title to his church once on a NPN while renting it out and not paying debt service. We assigned rents back to us and foreclosed. I suppose I may have to speak to the devil for my actions sooner or later but not even a church can stop the machine.