Bought property on county auction site now have a big issue

Bought property on county auction site now have a big issue

Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes

I bought a property on the county auction site however the satisfaction of mortgage that was recorded now is found to be not legit, forged  and never paid off. 

I am thinking  it was recorded by the seller or the wholesaler that was trying to sell this property prior to going up for auction but have no proof who it was. 

Now the 1st lien holder the mortgage that was never paid off, they has issued a lis pendent and starting the foreclosure.  The debt amount for this mortgage is about $20-30 k from what I can find online I am willing to pay if needed but when I called the bank they  wont release any payoff amount if not the past owner. 

The auction just happened and within the 10 day period after the auction. I have made the county aware but am waiting for judge to decide if sale will go thru by I am worried since they dont guarantee clear title they are going to deny my claim for refund.

 I am concern about losing the home and not being able to pay off this loan because I cant get the information.  I can not find the past owner to ask him to request the pay off for a fee which I am willing to do also

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  • Bill SchrimpfBusiness Member
    Real Estate Agent · Reno, NV · Member since 2014 · 349 posts · 189 votes
    2y

    @Scott Esmail - This is a terrible situation!  If you used a title company or closing attorney, start with them, right away.  These items are often time-sensitive.  You would be wise to hire an attorney in your county that is familiar with such topics, specifically "Quiet Title Action".  Although your not specifically doing a quiet title, what you need is closely related.

    Every state and county will have very specific procedures about how the process works in their jurisdiction.  Be confident the mortgage company, and the wholesaler is well aware of the procedures and will out maneuver you, even if you are factually correct.  Do not waste time.  

    Good luck, Hopefully someone in your area will be able to provide specific advice!

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Scott Esmail:

    I bought a property on the county auction site however the satisfaction of mortgage that was recorded now is found to be not legit, forged  and never paid off. 

    I am thinking  it was recorded by the seller or the wholesaler that was trying to sell this property prior to going up for auction but have no proof who it was. 

    Now the 1st lien holder the mortgage that was never paid off, they has issued a lis pendent and starting the foreclosure.  The debt amount for this mortgage is about $20-30 k from what I can find online I am willing to pay if needed but when I called the bank they  wont release any payoff amount if not the past owner. 

    The auction just happened and within the 10 day period after the auction. I have made the county aware but am waiting for judge to decide if sale will go thru by I am worried since they dont guarantee clear title they are going to deny my claim for refund.

     I am concern about losing the home and not being able to pay off this loan because I cant get the information.  I can not find the past owner to ask him to request the pay off for a fee which I am willing to do also


     What state is this in? Depending on the state the foreclosure could take months. If they filed a lis penden then the most likely also have an attorney. Get an attorney and get in communication with their attorney and let them know the you want to pay off the loan. Their attorney will speak with them about it. We went through this two weeks ago (had our attorney get in touch with another lienholders attorney to satisfy the loan).

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  • Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes
    2y

    @Chris Seveney this is in florida thank you for the advise 

  • Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes
    2y

    @Bill Schrimpf thank you for the advise 

  • Member since 2022 · 4 posts · 0 votes
    2y

    Greetings Scott,

    My daughter and wife own a nail salon in Orlando.   I’m up there from time to time.   
    Let’s play a game of true or false.  Once title is in your name or an entity you are the owner of the servicer has to provide an accurate estoppel aka payoff?  TRUE.   It sounds like you are hoping the court will reverse the sale.  So I gather you don’t have title yet?  All is possible since the courts have the power to vacate the sale under equity reasons.  You are most likely right that the sale would stick unless you can find something that was not done correctly like a procedural defect.   For example did they publish timely?  Did they include all necessary parties?  Lastly how do you know that the satisfaction was not legitimately done?  At the minimum you would want to have an evidentiary hearing in the first lien foreclosure case.   Also you have a very short time to intervene in that case.    
    Very few things can be guaranteed in life but once you have title they have to give you an estoppel period.   I have seen the team at property onion do it many times.   So once you get title reached out to them and tell them you need help getting the estoppel and they will help.   They can also help you find the old owners.   Foreclosures go fast but not that fast if you know what you are doing.  You can also at times negotiate the debt down and receive a satisfaction.  Remember don’t assume the other satisfaction is not real till you have actual evidence.

    Let’s Meet up in Orlando next time I’m there. 

  • Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes
    2y

    Thank you for the advise @David Abellard Jr  since I have posted this add the county allowed me to get my money back less the deposit of $5,060. I am currently going to file a motion with the judge to get me $5060 back too. As I feel they had some legal obligation not to sell the property or remove the forged satifaction since the notary did tell them it was fraud prior to sale. I will update this post when I get the final result on the deposit. 

  • Member since 2022 · 4 posts · 0 votes
    2y

    That’s amazing news.  Keep up the good work.  The most inexpensive title work is probably from property onion.  You may want to check them out.

  • Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes
    2y

    @David Abellard Jr sounds good I will look into them more

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Scott Esmail:

    Thank you for the advise @David Abellard Jr  since I have posted this add the county allowed me to get my money back less the deposit of $5,060. I am currently going to file a motion with the judge to get me $5060 back too. As I feel they had some legal obligation not to sell the property or remove the forged satifaction since the notary did tell them it was fraud prior to sale. I will update this post when I get the final result on the deposit. 

    thats interesting every time I have had an issue with an Actual auction and the authority wanted to cancel we got all out money back they never kept anything.
    I did have wells fargo sue on one though were the bank claimed priority over our position we bought at foreclosure sale.. we had to settle that and pay.. Even though we had clear evidence or at least we felt we did.. foreclosures have risk  no question.
  • Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes
    2y

    @Jay Hinrichs thank you for the post

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