Florida foreclosure lawsuit

[Peter Walther]

I just read a Florida foreclosure appeal decision I thought was pretty interesting.  

It seems MST brought a foreclosure action on its first lien mortgage and obtained a $183k final judgment. It must have been a fairly nice piece of property because MST wound up receiving a Certificate of Title in return for its $302k high bid. Unfortunately MST failed to join Caribe, who was the holder of a $63k 2nd mtg, in the foreclosure. Caribe filed a foreclosure action of its mtg in which MST counterclaimed claiming Caribe's mtg was junior to MST's interest and that Caribe's right was limited to redeeming the property for the $302k MST paid. Caribe agreed it's interest was subordinate but claimed, and the Court agreed, the redemption amount was limited to the $183k FJ. I believe the decision would have been the same if you were the successful bidder at the foreclosure. Whoever does your search and exams for the E&O report you're relying on to bid at foreclosure sales better know what there doing.

[Peter Walther]

While the decision doesn't mention the county the property is in, the opinion is from the 3rd District Court of Appeals which I believes covers Miami-Dade & Monroe counties.

You're right, several people missed the 2nd mtg, however, I believe that while there are people out there who have done hundreds of searches and exams there are few I would consider "experienced.  I believe most searcher examiners are trained to do a cursory review and get the commitment/report out the door and let the claims department sort out the problems.