Note Sold After I Foreclosed

[Jose Duran]

Hello Everyone, 

I started investing in Non Performing Notes a couple of years ago, so I still consider myself new at it. I was wondering if anyone can help me understand this.

I aquired a NP second lien position and when I bought it I was unable to workout a payment plan with the homeowners, so eventually I proceeded to foreclose. Unable to make contact with the homeowner I let the note sit unattended. I just found out it had been sold last year 2017. I’m under the impression that since I foreclosed I should’ve been notified of any sale of the property. Is it legal for homeowners to sell the property without me knowing? And wouldn’t the buyer do a tittle search where it would show them I foreclosed? Unless they didn’t run a tittle search, which seems really dumb. Sorry if this topic has come up before, I count find anything on this specific situation. 

[Mike Hartzog]

if you foreclosed from 2nd position, THAT event wiped your lien, not the foreclosure of the 1st lien.  You either received a payoff or, if nobody bid successfully, you were awarded title to the property subject to the first lien.  Sounds like the latter was the case.  If so, you then failed to maintain the payments on the first lien and so they foreclosed on you.