Note Investing: I have the Deed of Trust, not title

[Richard Bull]

Help. I have a property with a paying tenant for the past two years in Nevada. Unknowingly at the time, I was very new to REI and had purchased an HOA foreclosure and the property and later came to find that it was a clouded title. The note was with Wells Fargo and has since been sold off. It is a non-conforming note.

Looking for an expert to help me buy this particular non-conforming note and take over the payments for this property. 

Any recommendations or experts in the note investing field that I can speak to?

Thank you!

[Chad U.]

Originally posted by @Richard Bull:

Help. I have a property with a paying tenant for the past two years in Nevada. Unknowingly at the time, I was very new to REI and had purchased an HOA foreclosure and the property and later came to find that it was a clouded title. The note was with Wells Fargo and has since been sold off. It is a non-conforming note.

Looking for an expert to help me buy this particular non-conforming note and take over the payments for this property. 

Any recommendations or experts in the note investing field that I can speak to?

Thank you!

 Richard, first thing you'll want to do is research the county records for the property and look for who this note was sold to.  It would appear in the records as an assignment, or sometimes a release, etc.  Each county has it's own nuances in how they define the terms.  Once you've determined who the buyer is, Google them and see if there is any contact info.  If it's another large institution then you may have some difficulty connecting with the correct person, but it will generally be an Asset Manager.  If it's a smaller buyer such as a hedge fund or private investor may make it easier.  You can also try and figure out who the mortgage servicer is and contact them.  Chances are they will be looking for a full payoff, but you may be able to negotiate paying the arrearages and reinstating the loan.  

Secondly, if you purchased this at an HOA auction, then technically the title should be in your name. Did you not receive a certificate of title after the sale? If this is the case, then the 1st lien holder should have reached out to you by now with a demand letter of some sort. You should also check that you have the correct mailing address, etc and are able to receive their letters.

Thirdly, Nevada is now an HOA super lien state, so the 1st may have been wiped at foreclosure but you will have to check dates of when that came into effect to see if it can be enforced.

Hope this helps to get you started.  And hopefully you've recovered enough rent to cover the cost of the foreclosure.