leins

[Jack Lewis]

How do I find information about leins on property that are in foreclosure or being auctioned?

[Chris Martin]

@Jack Lewis  There are a few methods depending on what you know. From trustee sites (e.g. Brock and Scott(1)) you can usually find the NC county SP number, the trustee case file number, many times a book/page number, and a property address. Use the county property card (2) to translate address to a current owner. Then using the owner name look at recorded documents via the Wake county register of deeds(3). You'll need the grantor's legal name for the search. Most of the time they match the property card. Initially, just put in the grantor name with no other refinement. With less common names, you'll find the deed of trust (Document type D-T) and Substitute Trustee (Doc type S-TR) in one screen (set records per page to 100). Sort by the 'recorded date' field to get the position of the liens. Sometimes you run into refi-happy people with a ton of D-T records. In these cases, you'll have to eliminate the cancelled D-T to find the correct D-T entries to compile the current lien order. Once you have the lien order, you can see if the S-TR filing is on a first position D-T. You can do all this remotely.

You can also "pull" the SP file at the courthouse. It's best to know the SP number (e.g. 14SP672) but a clerk can look up the number if you only know the defendant's name (the grantor of the D-T from above.) The Special Proceedings division(4) (12th floor) has binders for each "SP" file. In the file you will find the demand letter, notice affidavits to lien holders, and other documents like BK proceedings, IRS lien and demand letters, etc. In the example 14SP672, you may find copies of death certificates, etc., that give you an idea of why the place is in foreclosure. In other words, don't bother trying to talk to that owner. Although the SP file has family contacts, etc., via written (certified) correspondence, use good judgement on how you use the file. The first (and only) loan payoff per 14SP672 was (as I recollect) over $70K but I won the initial bid at $1 over the opening bid of $20,880. 4-6 years ago, I would have bought that property at $20,881. Alas, there were upset bids for many weeks and I didn't chase the motivated buyers. Not uncommon lately. To borrow a Yogi Berra quote, ' the place is so crowded, no one goes there anymore.'

1. https://www.brockandscott.com/foreclosure.asp#foreclosure-sales
2. http://services.wakegov.com/realestate/
3. http://services.wakegov.com/Booksweb/GenExtSearch.aspx
4. http://web.co.wake.nc.us/courts/special.html

Hope that helps get you started.