We are buying a property subject to current mortgage. It's scheduled for foreclosure auction in Tarrant County, Texas on 6/3/2014 (next Tuesday) and we will be closing on it in a few days.
Upon speaking to the lender and foreclosing attorney office about paying the reinstatement amount after the title transfer to bring the mortgage current in order to prevent the foreclosure, we've received different instructions on how to pay. The lender asked us to wire-transfer the amount to the lender where as the foreclosing attorney office asked to overnight mail a certified check made out to the Lender to the foreclosing attorney office. We want to ensure that the property actually gets taken off the foreclosure list after we bring the mortgage current.
Who has the final say, the lender or the foreclosing attorney office, on stopping a foreclosure once the mortgage is made current? Is it the lender because the foreclosing attorney office works for the lender? Or, is it the foreclosing attorney office who is representing the lender for collecting a debt, just like all negotiations for a personal debt collection has to be handled with the collections agency after it's been reported as a collections item?
The trustee acts at the direction of the lender, only the lender can stop the process. The trustee may learn something to inform the lender of and advise, but the lender (note holder) is in charge.
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
The lender decides, the foreclosing attorney follows their instructions. Does the lender know you doing a title transfer, or do they just think the borrower is catching up? If you do it, wire the money to the lender and send the wire confirmation to the attorney, along with the contact info for whoever you're dealing with at the bank.
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