Are there two mortgages on this property?

Question

Looking to purchase my first investment at foreclosure. I see two lenders listed on the deed, does this mean there are two mortgages?

Mike Morrone · Answer

Bill,

Who would be the title company on this property? I know I have a lot of questions, thank you for your patience. :)

Bill Gulley · Answer

Call the title company and ask for it, it should be much cheaper, I get them free.... :)

Mike Morrone · Answer

How should I perform a preliminary title search?

Bill Gulley · Answer

No, so long as it is the senior, 1st mtg, they will say waht the priority of the lean is, if not, ask. Hint, it won't be going at 40K, or less which could be a second subject to a first, if you state does that, it will be over 160K.

If you have time, might ask for a preliminary search for title ins. Otherwise you need to look for other issues. Again, the trustee did a title search to foreclose, if you get there earlier and can find them you may get to see that search.

On this document pictured you start at the bottom working up, the releases show were from prior loans that were paid off by the ones shown. The assignments are simply passing the outstanding notes to servicers/holders, they aren't new liens. Looks like from that too there were slow pays or delinquencies that may have caused them being passed, or not. Anyway, Happy bidding!   :)

Chris Martin · Answer

Two lenders on the deed? I think you mean the deed of trust or mortgage. Without looking at the document, I'd say the 11/21/11 assignment was for the Saxon originated first position mortgage. An FYI...  Ocwen purchased Saxon. But the assignment looks like the note went to Deutsche and the servicing assigned to Ocwen. The two most recent assignments deal with the second position MERS held (lending Tree originated) loan. It looks like they rerecorded the assignment on 3/14/12. Without seeing the documents, I'm not 100% sure, but these kind of assignments are not atypical. There is no substitute trustee filing so you must be in a judicial foreclosure state.

Mike Morrone · Answer

So what you're saying is if I bid (and win) on this property, I won't have to worry about getting stuck with another mortgage? Debt amount listed is $186,000 and all costs are $186. I have seen them sell well below their debt amount so what is that number used for?

Bill Gulley · Answer

Looks like there could be, the 167500 qnd the 30.....looks like the 167500 is foreclosing. Can't really tell because you need to look at the source documents, instruments. Ignore the asignments for your interests.

However, it's irrelevant what is owe as the bid will open higher than the payoff, unless you can see the note terms you can only guess, these people had alot of activity, I doubt they paid additional amounts as they refied. Just a guess.

At a FC, if you are going, you need to know what you are willing to pay, this could open at 200, 220K, could be higher too, if that is in your range, all you can do is attend and bid. Good luck...  :)