I am seeing a lot of NTS auctions with a recent second loan that is higher than the first.? In most cases, these appear from county records to be loan modifications that are in default, however the NTS is showing up attached to the 1st loan.? How is this reported on foreclosureradar and how can I judge if these properties are suitable to bid on?
Hi Amy … Seen the same thing. Example: A 12/10/2011 2011-00123456 $750,000 DOT in NOD/NTS with a (later loan) 2012 $795,000 DOT by the same lender. If you can’t find a recoveyance of the earlier loan, you may need to look at the actual DOT (2012) to see the verbiage … “modifies DOT rec 2011-00123456”?
In the post ‘lender insanity’ (fog a mirror get a loan) era (1999 to 2007), and in the absence of an egregious title search error, a lender would not?(or very rarely) make a large new loan without reconveying the earlier loan or getting a subordination agreement (moving the large new loan into senior position). If you don’t see the reconveyance or subordination agreement … look closely at the?DOT for “modification verbiage” which notes that this new loan is stepping into the shoes of the older loan (again, same lender on both).?
Also … the NOD will commonly reference the original DOT by doc & rec date and the later ‘loan modification’ by doc & rec date