Restarting a failed foreclosure

[Michael Vaughn]

Hi

In case a borrower is able to get foreclosure rejected, say for missing assignments or any other technical detail for that matter, can the lender file for foreclosure again (assuming the loan is still delinquent) once all the issues were sorted out? I am asking both in general and also in regards to a specific deal I'm currently reviewing in North Carolina.

[Jay Hinrichs]

Originally posted by @Chad U.:

Originally posted by @Michael Vaughn:

Hi

In case a borrower is able to get foreclosure rejected, say for missing assignments or any other technical detail for that matter, can the lender file for foreclosure again (assuming the loan is still delinquent) once all the issues were sorted out? I am asking both in general and also in regards to a specific deal I'm currently reviewing in North Carolina.

 Yes it is possible to file again. However be careful as there is a limit to the number of times a Lender can refile a foreclosure.  You may want to have a local NC attorney who is familiar with foreclosure laws there to review the collateral to confirm. 

I ran into a strange deal a year or so ago..  arm lengths transaction one of my wifes old clients calls out of the blue ( one reason I think being an agent is really helpful long term)  anyway he said remember that property you sold me 15 years ago.. well I stopped paying about 7 or 8 years ago.. they never foreclosed and just sent me the deed.. but its in tax default and I need 20k or I am going to lose it in a week..   Well as you know that's a Jay deal..  we get title pulled in a day sure enough.. somehow I guess if banks wait to long they lose the right to foreclose ( WA state)..  never heard of that or saw it before.  So of course we make a deal I put the 20k we split the profit 50 50 we sold it for 225k.. so great deal for him he was going to lose it.. so he made 110k.. I made 110k in 90 days on a 20k investment.. but I had to pay my wife a full commish of course.

So that led to thinking  U could have resellers of notes  to those with little knowledge of the note business and they buy a note that CANT be foreclosed on.. ???  

Chad U ever run into this.. I mean I will take it was easy money.  but got me to thinking about doing some deep dives into old mortgages.