Best bet for finding a hard money lender that will loan on a trustee sale is to ask around at the steps. Their rates will likely be substantially higher than 7%, but perhaps you could use them as a bridge loan. Very little chance you’ll find a title company to give you a lenders policy that would cover the lender at the time of the trustee sale, so the lender has to be willing to accept the title risk until a policy can be put in place after the fact. If you do buy at trustee sale the 2nd can not come after you or the property as their security interest in the property will be wiped out by the foreclosure (they may still be able to go after the borrower). If you can’t find the cash to bid on the steps, then a short sale is a reasonable suggestion. Typically the 1st and 2nd will cooperate such that the 2nd at least gets something. Finally, the opening bid is likely not what you will pay. If its worth 180k, you should expect to pay $135-150k at trustee sale.
I’m interested in a property that will be auctioned off. On the preliminary title report, it states Abstract of Support Judgment recorded Octorber 04,2011, however, it does not have a price. I’ve seen this on other prelims where it says the same thing but will state, amount due $XXX. What does this mean? Is there a lien for something?
Best bet is to pull the document and read it. Are you sure it matters? If you are buying at trustee sale, and it was recorded after the loan in foreclosures, then it will likely be wiped out anyway.
Sorry for asking rookie questions but I have another question. The prelim shows 1 abstract of support judgement recorded october 04, 2011 and another on 03/22/2001. It is a a trustee sale through auction.com. How would I go about pulling these documents?
You have a few options: 1) go to the county recorders office, there you can view them on screen for free or have them printed for a fee, 2) you can ask a title company for a copy (good to build a relationship with a title company if you are going to be buying at auction regularly, or 3) if you are a ForeclosureRadar customer you can purchase them for $3/ea in the app (go to Transaction History for the particular property, then add the 2 docs, then click purchase).
hi please tell me step by step how to check if there are any kind of liens
on the property.
on or off foreclosure radar site,free or with fees…
thanks
Hi Mel, You can purchase title insurance immediately after a trustee sale provided there are not any clouds on title that would prevent the issuance of that title policy. You mentioned 120 days and I believe what you are referring to is the 120 day redemption period by the IRS. If there is an IRS lien on the property then a title company would not insure the title until the redemption period had expired. We do provide a transaction history which includes Grant Deeds, Deeds of Trust and foreclosure notices. When available we also provide the link to the county Grantor/Grantee index so that you can search for reconveyances, subordinations and IRS liens. We also provide the link to the County Assessor where you can check for past due property taxes. You will find other valuable resources within the transaction history. You have the ability to purchase document images and customize the transaction history to show the results of your research. Additionally we provide a check list so that you can keep track of your research. We have a great recorded webinar on title research. To view the recorded versions of our webinars please click on “Webinars” under the Support and Training tab on our home page. You will then scroll to the bottom of the page to see the previously recorded webinars that we have on file. You can also register for our free webinars and view the recorded version by clicking on the following link: https://www.foreclosureradar.com/webinars.
Bought a property at a Trustee Sale off the courthouse in Texas. According to a lawyer I consulted, if the foreclosure was done by the Mortgage Lender, it extinguishes all other liens except Federal and Property Taxes. Another exception is if the Condominium Declaration specifically makes HOA liens senior. I checked with mine and it said it is junior to Lender liens, so the lawyer said the HOA lien can’t be enforced. What I will try is to have them voluntarily remove the Lien, so it won’t cause trouble in future title searches, etc. Hope it helps.
David S, -
All kinds of junior liens (like in your case a junior HOA lien) get “wiped out” via fcl. sale. You would be wasting time and money trying to clear title of junior liens that have already been cleared by the fcl.!!! Title companies are fully aware of what liens have been cleared fm. title.
A side note:In Every state I am aware of (Wa., Nv. Ca. Or. Ga. Fl and now Tx.) - HOAs put in their CC&Rs language that make any HOA lien junior to a first lender, at the least. If this provision weren’t in the CC&Rs, lenders would not want to make loans. After all, HOA liens could, in theory, be so large the lender would be in 2nd position with no equity protection!.
In Ca., HOA liens only have priority from the date the actual lien is recorded - meaning they are behind all loans/liens that recorded prior to the actual recording of the HOA lien.
I have a question in a particular (very interesting) situation. Let me pick your brains on this one:
This is in Florida.
Timeline:
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In 2003, Person A purchases property and gets mortgage from Bank A.
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In 2010, HOA forecloses on Person A, and becomes owner of property (subject to mortgage from Bank A).
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In 2011, Bank A forecloses on Person A (also lists HOA as defendant), and Person B bids and purchases the property.
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Will Person B have a clear title to the property?
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Is Person B responsible for any HOA assessments Person A was supposed to make?
- Assuming the HOA is junior to the Bank A mortgage, and that there are no other liens or encumbrances, then yes it would be free and clear. 2. Unless Florida HOA’s liens are super senior (this is true in very few states), then yes, person A should be free from any HOA claims prior to the date they purchased the property at foreclosure sale. While this is most likely right, please note that I’m not an expert in Florida foreclosure law, so I’d strongly suggest verifying this with a local attorney before putting any money at risk.
Hi everyone, thanks for so much valuable info. A property is being auctioned (going to TS) in Ca. by the 1st TD, the owner has recorded a divorce Lis Pendens on the property ,does the date of this Lis Pendens recording matter? If I buy this property in auction, do the previous owners have control over my selling it? can they not remove the Lis Pendens? what would it take to have them remove it? what are things that they can legally do? If I get an attorney , can the attorney legally force them to remove it? what are the risks of buying this property? I am planning to sell this later and I want to make sure I can get title insurance on it. I really appreciate all the help I can get on this. Thanks again.
I have had some trouble with lis pendens in the past. From my experience title companies won’t remove them even though in reality most claims coming out of the suit (especially those around a divorce) would be junior to the foreclosing deed of trust and therefore wiped out by the foreclosure. Yes you likely can have an attorney file to have the lis pendens released. That said, be very careful that the lis pendens is not regarding pending litigation against the lender whose loan you are purchasing or any senior lenders. Most auction buyers I know avoid these, but I personally might pursue one if there was enough margin to justify the added time and expense. if you do choose to pursue it, I would recommend having your title company and attorney review it before proceeding.
If it is discovered that as a result of a search of the recorder’s office that there is no record of a 1st mortgage being recorded on a Michigan property, can the alleged lender foreclose on that property by simply recording the mortgage deed retroactively prior to initiating the foreclosure action?
Likely yes. In most states recording of the mortgage isn’t required, instead it provides lenders a measure of protection by securing their position in the property relative to other creditors who may claim an interest.
If there is a child support judgement on a property in Orange County, CA and the parent who owes the judgement amount is letting the house go into foreclosure, what happens to the child support judgement?
Like any judgement, if it was recorded after the deed of trust that is being foreclosed upon, its interest in the property will be wiped out by the foreclosure.
I would say that this is not true in many states where HOA liens are considered as “super liens” to certain limit. In Colorado, HOA can collect up to 6 months of HOA fees plus legal fees from the winner of the foreclosure sale regardless of the lien position, or even if the HOA lien is not recorded.
Already mentioned super liens in the post just above, but thanks for the specifics on Colorado.
Sean…I’m a Missouri foreclosure investor and have spent the last two hours reading many of your interesting and educational comments here. The only lien type I did not see addressed in terms of whether it remains against the title after a trustee’s sale is a city “property mowing/clean-up” lien. Of course, they are usually junior since they occur after the owners abandon the property. Whether they are “wiped off” or not may well differ from state to state. If you or anyone knows the Missouri law I would like to here from you.