All Forum Posts by: Robert Taylor

Actually that's another angle I hadn't thought of for some reason but it certainly makes sense! I'd just been thinking on terms of your "normal" short sale with one bank, but not knowing what the principal balances are on each but factoring in that this character just got whacked with the fraud case (which in the notes mentioned a $70k payment and $3k/month garnishment for restitution) plus attorney's bills and doubtful shot at decent employment, I really doubt he was paying down those balances much! Even if the short sale was at listing price, its got to be a fraction of the grand total then. 

Well, after all of this and a lot more, sale was cancelled at last minute, which at least here and I'd guess everywhere else as well, is somewhat common. Usually each week there's at least a few and sometimes a bunch that they announce right before the sale begins had been cancelled and others which had been postponed. This one did have a short sale going as well (listed at substantially higher price) which they recently accepted an offer on, but I've seen many go through the auction with accepted offers on their short sale listings as obviously the soon to be former owner can accept as many offers as he/she wants, but if the bank isn't interested it doesn't mean a thing and the sale goes through. Apparently they liked this one, although I wouldn't be shocked if it pops up again in a couple of months, that's happened many times as well. Thanks for your help guys!

@Joel Owens thanks! Yes, WI is a judicial state and this is the county sheriff's auction. I think you're right on with my title guy, no one wants to be sued and these days people get sued for everything!

Also, that would explain what the plaintiff (from fraud judgement) was doing in court right after foreclosure case was filed and a day before the lis pendens was even filed, they wanted to get in line in front of the 2nd mortgage for any surplus. I didn't see a judgement amount on the Citi foreclosure but it was originally a $500k mortgage 5 years ago and opening bid was dropped to $350k, so I'd think the chances of any surplus are small or nonexistent. Condo is worth conservatively $450k, so I can't see it going up too much from the opening bid either.

Yes, that has me puzzled too. He sent all of the docs he got from his online search and its obviously all the info from whatever service he uses, they aren't docs anyone could get themselves online without being a subscriber to whatever he subscribes to, but the conclusion seems obvious to me now as well. 

Why would any bank write anyone a mortgage then? Maybe a retired 80 year old nun is a good risk for not committing a fraud and being sued for it, but what if she forgets to renew her car insurance and runs someone over with her car?? She'd end up with a monster judgement for that too and that mortgage would thus be worthless as well!

I'll have to do some more research on the exact WI laws, but my brother is at the auction now waiting for that one to come up. Milwaukee County has a good sized number going through each week, although its certainly down from a few years ago.

Thanks @Wayne Brooks the mortgage (first) that's foreclosing was recorded with county on 7/31/08. The judgement date was 2/18/11, but that was in the other county. it wa docketed in this county on 3/8/11 but they did file a lien on the property in this county back on 11/24/09. Obviously, all of that happened after the mortgage was recorded, so then from what you're saying they should be in line after the first mortgage then I take it? 

I do get your logic that any mortgage would be rendered worthless by any future judgement if it worked that way, that makes sense!

OK, I'm about out of time but I think I've got some answers as my brother is at the law firm now getting info now, hopefully. I'll have to find somewhere to get the exact ins and outs of the law on this subject, I've run into this before where there's a question like this and I know other buyers do too and no one buys a lot of these if there's any questions about a defendant being served or having any claim on the property.

Also, I see that the plaintiff in the fraud civil suit filed a lien on this condo on 11/24/2009. 

So, I guess my main question is if Citi filed lis pendens after all of this but named this plaintiff as a defendant in the foreclosure suit like I always see them do for any other parties like a 2nd mortgage and it was filed in both counties, so they must've been properly notified, why wouldn't this get dropped? Is my title guy too nervous??

OK, the second case I was looking at was a Transcript of Judgment filed here in Milwaukee County, which is the county where this property is located, the civil suit against him for the fraud was in Rock County. Transcript was filed on 3/4/11 and docketed on 3/8/11 but then it also lists two "judicial transfers" on 8/3/13 and 8/2/14. Citi filed on 8/1/12 and lis pendens was filed on 8/30/12 and was filed in both counties.

As I've mentioned before, I'm pretty well experienced in buying here at our sheriffs auction (WI is a judicial state) and haven't had an issue yet in buying quite a few of them and I've got a guy who runs the title searches for me on the few that I'm really interested in, always my last step is his "stamp of approval". I know he's quite cautious though and there's one going through tomorrow worth going after, but its a $350k opening bid, so not the kind of $$ I feel like losing, or even the 10% I'd have to leave with them tomorrow if I got it. Its got a great upside though, so even some possible risk is worth taking here.

The soon to be former owner was involved in a fraud case with his former employer and got a $500k judgement on him, judgement date of 2/18/2011. This case was also in a different county than the auction (and of course the property) 

Then, Citi filed on 8/01/2102 and it has the lis pendens as filed on 8/30/12 and my title guy says it was filed in BOTH counties, the one where judgement was as well BUT I also see in the court record that an attorney for the plaintiff in that fraud suit filed something involving Citi's foreclosure suit on 8/29/12-one day BEFORE lis pendens was filed-that's what has me wondering here. 

There's another case from same plaintiff too, I'm going to look at that now but wanted to get this up right away, as the auction is tomorrow, probably going through around 11am CST. So, I'm wondering if any of our well versed people have any conclusions as to what kind of trouble I might have, if any at all??? Thanks!