ADVANCED - Anyone found a way to lookup current mortgage payoff?

[Rodney D.]

Hi all,

This is actually a 2 part question for fellow foreclosure investors:

1. Mortgage Payoff

Has anyone found a way (or pay-service) to obtain a CURRENT mortgage payoff for mortgage/note WITHOUT owners authorization?   (note: this is NOT the recorded trust/note - I've got that already from title search)

Why?  I'm seeing a lot of second notes being foreclosed subject to payoff of the 1st.  Problem is, many note payoffs are actually HIGHER than the original amount recorded in the clerks office.

so this leads to question #2...

2. Any ideas on how a mortgage/note ends up 50% HIGHER than the county recorded amount?  (refi's are recorded as new notes and satisfy the original note so they don't count in this scenario)

Why?  Many investors here in Northern Virginia, are purchasing 2nd position notes/trusts via foreclosure subject to payoff of the 1st.  Problem?  When going to settlement the note, lets say a $300,000 trust recorded in 2004, has now become $600,000!!  Yes, let me repeat, that is not a typo, its over 50% MORE than the original recorded amount.  

This has left many investors scared to purchase 2nd position foreclosures.  When doing our due diligence before the sale, we call up the 1st position(trust) noteholder (located via MERS) and ask them for payoff.  They state that information is private and can only be released with a signed authorization from the homeowner.

In reply, I say to the noteholder, "great idea, let me call up the homeowner who is facing foreclosure, and who is hostile as hell, ask them for their payoff amount on their 1st mortgage, or, authorization to contact their bank to find out." <click>   The noteholder of course says, "sorry sir, we cannot release that information without authorization."

ANYONE else encounter these 2 problems??

Rodney

15 year investor