the 2nd lien started foreclousre procedure, even it is wiped out. what's going on?


#1

The deed has been recorded under my name, and then few weeks later, the 2nd lien holder started the foreclosure procedure. My title company has confirmed that the 2nd is technically wiped out. Shall I contact them to correct the mistake? if they refuse, what damage will they be liable? I do not understand why lien holder will make such mistake? Won’t they need to run a prelim themselves so that they know their own status?
Thanks !


#2

HI Rachel,
Mistakes are made everyday. You can certainly reach out to them with a copy of your trustees deed. It would probably be best to contact the Trustee. The only concern I would have is if there is a missing subordination agreement somewhere?? If your title company confirmed that this is, in fact, a second that is foreclosing then you should be ok. I would still let the Trustee know and consider buying a title policy.


#3

my title has confirmed the lien positions, but still do not like the outstanding issue. I am in contact with the trustee, and apparently the trustee service is out sourced in India…hope it will get addressed quickly. Is there any way to get their prompt attention?