Real Estate Agent · San Jose, CA · Member since 2020 · 31 posts · 4 votes
I have someone that wants to sell their property to me. Right now it says an NTS was filed last month, there was already a sale date that passed, and now the foreclosure stage is "3rd Owned". Does this mean that the mortgage debt was sold to someone and they now own the house? It seems like the original owner is still on title. The owner told me that a company paid off the owners remaining mortgage balance and have now posted a paper notice on the house saying the owner is evicted. However the owner is making it seem like if they pay off that company then they still own the house. If I were to buy the house would I have to pay that company or would they be paid out of escrow like any other mortgage? If the foreclosure stage says "3rd Owned" is it likely that the original Owner can still sell the house?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
Never heard the term “3rd owned”. Maybe “sold to 3rd party”. What state is this in? Are there redemption rights after a mtg foreclosure there? You need to know the foreclosure laws that apply.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
Never heard the term “3rd owned”. Maybe “sold to 3rd party”. What state is this in? Are there redemption rights after a mtg foreclosure there? You need to know the foreclosure laws that apply.
Real Estate Agent · San Jose, CA · Member since 2020 · 31 posts · 4 votes
5y
@Wayne Brooks California. I guess 3rd owned means it was sold to a 3rd party rather than the bank at auction. I was looking at the transaction history for the property and its confusing because another NTS was filed after there being an assignment from the auction. Also it looks like there has been no trustees deed yet.
Its just weird because the owner made it seem like if they paid off this 3rd party company then they could sell it.
Anyway yeah the next thing would be to look into what you're saying about redemption rights.
Specialist · OverTheRainbow · Member since 2020 · 607 posts · 909 votes
5y
Originally posted by @Account Closed:
I have someone that wants to sell their property to me. Right now it says an NTS was filed last month, there was already a sale date that passed, and now the foreclosure stage is "3rd Owned". Does this mean that the mortgage debt was sold to someone and they now own the house? It seems like the original owner is still on title. The owner told me that a company paid off the owners remaining mortgage balance and have now posted a paper notice on the house saying the owner is evicted. However the owner is making it seem like if they pay off that company then they still own the house. If I were to buy the house would I have to pay that company or would they be paid out of escrow like any other mortgage? If the foreclosure stage says "3rd Owned" is it likely that the original Owner can still sell the house?
You can't buy the property from the previous owner. Sorry to say, he no longer owns the house. Whether he will accept that fact or not remains to be seen. A "3rd party" now owns the property ( that means someone successfully won the bid at the auction). It can take 60 to 90 days before a new deed is recorded depending on the county and the trustee.
Always have a title report before buying a property. It sorts out questions like this one.
Real Estate Agent · San Jose, CA · Member since 2020 · 31 posts · 4 votes
5y
@John Farady its just weird because the owner (previous owner) made it sound like the 3rd party had presented some kind of deal to them where they could pay back the amount that the company bought the house for through some representative and then get title back.... I wonder if they were lying?
Never heard the term “3rd owned”. What state is this in? Are there redemption rights after a mtg foreclosure there? You need to know the foreclosure laws that apply.
3rd Owned simply means someone won the bid at the auction and title passes to them rather than to the bank. That is used out west with Deeds of Trusts. It does not have to go through a lawsuit and a judge to be allowed to be sold. I know you know that, but many people new to foreclosures would be confused and this explanation is for them.
Paradise, CA · Member since 2015 · 1k+ posts · 871 votes
5y
There are no redemption rights in California unless it was a judicial sale (Lawsuit). Previous owner will be evicted and they no longer own it. I wouldn't get anywhere near it as you are negotiating with a disinterested party now that does not have ownership of the property any longer. Sooner or later they will know that as well.
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
5y
3rd Owned on prop radar means it was sold at auction to a 3rd party. If it was just sold then it's possible prop radar hasn't updated to reflect the recording of the new deed yet.