Help Reading Preliminary Title Report for Auction

[Peter Pierzchala]

Is there a way to understand which liens I would assume responsibility for if I buy a bank owned property at auction?

The Preliminary Title Report states under requirements of Schedule B-I:

10. The matters set forth in the following exceptions must be paid and released of record at or prior to Date of Policy: (I removed peoples names)

11. Open-end Mortgage in favor of MERS, INC., AS NOMINEE FOR BCI FINANCIAL CORPORATION from XXXXXXX in the original principal amount of $ 138,400.00, dated 05/13/2004 and recorded
05/13/2004 in Volume 338 at Page 179 of the Winchester Land Records.

Mortgage was further assigned from MERS, INC., AS NOMINEE FOR BCI FINANCIAL CORPORATION to
FEDERAL NATIONAL MORTGAGE ASSOCIATION, dated 04/11/2018 and recorded 04/25/2018 in Volume 438 at
Page 933 of the Winchester Land Records.

Mortgage was further assigned from FEDERAL NATIONAL MORTGAGE ASSOCIATION to NATIONSTAR
MORTGAGE LLC D/B/A MR. COOPER, dated 07/19/2019 and recorded 07/29/2019 in Volume 447 at Page 372 of
the Winchester Land Records.

Mortgage was further assigned from NATIONSTAR MORTGAGE LLC D/B/A MR. COOPER to US BANK
TRUST NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS OWNER TRUSTEE
FOR VRMTG ASSET TRUST, dated 10/29/2021 and recorded 11/22/2021 in Volume 466 at Page 109 of the
Winchester Land Records.

12. Open-end Mortgage in favor of BANK OF AMERICA, NA from XXXXXX in the
original principal amount of $ 82,000.00, dated 03/23/2007 and recorded 04/10/2007 in Volume 374 at Page 71 of the
Winchester Land Records.

Mortgage was further assigned from BANK OF AMERICA, N.A. to ABS LOAN TRUST V, dated 12/19/2018
and recorded 12/26/2018 in Volume 443 at Page 315 of the Winchester Land Records.

13. Judgment Lien in favor of SUPERIOR PLUS ENERGY SERVICES INC. D/B/A SCASCO ENERGY from XXXXX in the original principal amount of $ 2,447.43, dated 11/11/2015 and recorded
11/16/2015 in Volume 425 at Page 1082 of the Winchester Land Records.

14. Lis Pendens in favor of NATIONSTAR MORTGAGE LLC D/B/A MR. COOPER from XXXXXX, ET AL,
dated 08/15/2019 and recorded 08/20/2019 in Volume 447 at Page 956 of the Winchester Land Records.

15. Judgment Lien in favor of CAVALRY SPV I, LLC from XXXXXXXX in the original principal amount of $ 4,037.51,
dated 11/02/2020 and recorded 11/05/2020 in Volume 455 at Page 1165 of the Winchester Land Records


Does Line 14 indicate the Mortgage from Line 11 is the one being foreclosed and that would be the First Position Lien?

What happens to the second mortgage on line 12?

Am I correct to assume that the lien on line 15 carries over to whoever buys the property since it is dated after the Lis Pendens on line 14? But line 13 does not?

I'd appreciate any clarity you seasoned experts can bring.

[Wayne Brooks]

Quote from @Peter Pierzchala:

Quote from @Tom Gimer:

@Peter Pierzchala You said this is a bank owned property (REO) being sold via the auction method. If so the foreclosure sale has already occurred and junior liens have been wiped. All of the listed liens would be paid and/or released and/or dealt with at closing.

You've provided the section of the title commitment which contains the requirements... meaning these things (paying judgments, obtaining releases of mortgages (or extinguishment by law), etc.) will all need to be done in the process of your closing in order to insure title. If this is truly REO there is no lien priority issue to analyze.

 Thanks Tom!

The property record shows the current owner as the bank, so it is REO. The sale price recorded with that change of ownership is the total of all the liens probably?

It doesn’t matter what price the bank bought it back for….all the other liens were wiped out that point, and besides…the bank will be selling the property without any other liens, regardless.  BTW, not that it matters with a REO, but when a LP is recorded is irrelevant to lien,priority, and which liens survive…it’s when the mtg being foreclosed was originated/recorded originally.