Question for anyone well versed in liens and judgements getting dropped when first mortgage forecloses-VERY TIMELY!!
As I've mentioned before, I'm pretty well experienced in buying here at our sheriffs auction (WI is a judicial state) and haven't had an issue yet in buying quite a few of them and I've got a guy who runs the title searches for me on the few that I'm really interested in, always my last step is his "stamp of approval". I know he's quite cautious though and there's one going through tomorrow worth going after, but its a $350k opening bid, so not the kind of $$ I feel like losing, or even the 10% I'd have to leave with them tomorrow if I got it. Its got a great upside though, so even some possible risk is worth taking here.
The soon to be former owner was involved in a fraud case with his former employer and got a $500k judgement on him, judgement date of 2/18/2011. This case was also in a different county than the auction (and of course the property)
Then, Citi filed on 8/01/2102 and it has the lis pendens as filed on 8/30/12 and my title guy says it was filed in BOTH counties, the one where judgement was as well BUT I also see in the court record that an attorney for the plaintiff in that fraud suit filed something involving Citi's foreclosure suit on 8/29/12-one day BEFORE lis pendens was filed-that's what has me wondering here.
There's another case from same plaintiff too, I'm going to look at that now but wanted to get this up right away, as the auction is tomorrow, probably going through around 11am CST. So, I'm wondering if any of our well versed people have any conclusions as to what kind of trouble I might have, if any at all??? Thanks!