Foreclosure On Investment Properties

[Ulysses Grant, IV]

My investment group invested funds accumulating $120k among four properties in the Houston area. I was pretty suspicious regarding the finished property being pulled off of the market suddenly for a month. Looked up some information today and spoke with the original lender stating that he foreclosed on the property due to the property not selling in time. While we do have deeds of trust for each property I do not have the original notarized copy so was unable to file a lien at the courthouse. The other three properties show little to no signs of development and I am sure those properties will be foreclosed on as well. What legal recourse do we have to recover funds if we are unable to place liens on the properties?   

[Wayne Brooks]

Well, you likely won’t recover the majority, if any, of your money as it sounds like you were lending money as a second mtg (if your mtgs were/are recorded prior to a first mtg foreclosure).  Get your mtgs filed ASAP. If the properties sell at auctions for more than the first mtg, unlikely, you’d get any overage amounts.  It’s doubtful the individual will have any money to pay any judgments you might get.

Find out the status on his first mtgs on the other properties and if it makes sense, buy out the first mtgs so that you have more control.