Two mortgages on same property found on tract search!
Hello,
In doing my due diligence on a condo that is going to auction, I found two mortgages. The property sold for 240k in 2008. There is a mortgage for 240k from HUD and a mortgage from a bank for 240k. This seems very strange to me. Is this an error? Potentially entered in wrong? Can people actually take out two mortgages for the full amount?
2. Mortgage recorded (DATE) as document (doc number) made by (person's name) to Secretary of Housing and Urban Development, to secure a note in the originally stated principal amount of $240,000.00, and to the terms and conditions thereof.
3. Mortgage recorded (SAME DATE) as document (different doc number) made by (same person's name) to Financial Freedom Senior Funding Corporation, A Subsidiary of Indymac Bank,F.S.B., to secure a note in the originally stated principal amount of $240,000.00, and to the termsand conditions thereof. Last assignment of mortgage to CIT Bank, N.A., recorded as (doc number).
I'm tempted to just ignore this one as it seems fishy to me.
Any guidance is greatly appreciated!
Tim Wittenborn
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
It's a reverse mtg, which fha insures. They commonly do a "double filing" for the Single mtg.....carry on.
Thanks for the reply!
I am not familiar with reverse mtg, so doing research now. It's crazy when working with auction properties how much continues to stump me. Haven't had a successful bid yet, because I'm being very cautious. I'll keep my fingers crossed on this one for Tuesday!
If the goal of the reverse mtg is to not have payments, then at what point would the mtg enter foreclosure?
Anyway, there are no other liens or anything fishy, so I will trudge forward with this one.
Thanks again!
Tim W.
