Lis Pendens from nowhere

[Lubasha White]

Please anyone with experience of buying foreclosures could you help with advice in this situation?

I bought SFH in March at foreclosure auction and got certificate of title on this property. Several days ago I started to receive offers from attorneys to defend it from foreclosure. Checked in public records and indeed, found that in April someone filed Lis Pendens against of my property. From further research I figured out this record refers to mortgage done in 1993 by lender different from one that foreclosed on this house. However, that lender is not in the picture of threatening me to foreclose on my property but successor (?) who just bought the paper from him.

My question is: does second mortgage wiped out by first in foreclosure auction sale, or it has ground in court for whatever reason?

[Wayne Brooks]

@Lubasha WhiteTalk to an attorney/title co.  You need to first determine if the new lender foreclosing is junior to the one where you bought the property.  If so you're pretty good.  Secondly, see if this other lender was named/served as defendant in the original foreclosure.  If so, done deal and the current foreclosing lender will have to dismiss.  They may not know they were foreclosed out, if they bought the note without doing good homework.  If this lender is junior, but was Not named as a defendant, not the end of the world.  An attorney can reopen the foreclosure and haven them foreclosed out without having to start the whole process over.

BUT.....since you say the currently foreclosing lender is from a 1993 mortgage, I'm guessing it is Not a second mortgage, not as to recording timelines anyway.  But maybe there was a subordination done at the time the mortgage which was foreclosed on, was originated.  Check the mortgage document online which caused the foreclosure auction you bought from, looking for a subordination from the lender now foreclosing.

@Lew Payne I'd be surprised if that holds up here, without a mortgage, since a Note gives you no security in the real estate, or the right to foreclose.  Getting a judgment would create a lien, but prior to that, I don't think so.

@Jay Hinrichs Judicial proceedings only here, no Notice Of Default option, that I know of.  LP with the accompanying complaint to foreclose (law suit).