All Forum Posts by: Dav Horn

Hi Tom,

Thanks. I looked at the complaint history more closely (this thing started 4 years ago) and noticed that HOA, the local tax authority and the IRS issued disclaimers to be removed from the suit.

Am I correct by doing this that they are dropping there claim on the property and therefore the associated lien, or is there some way they can disassociated themselves from having an interest in this legal action, while retaining a claim against the property?

The original, 2nd & 3rd mortgage lenders did respond and no disclaimer.

This went through mediation, multiple stay requests, with a judgement at the end of last year.  It was scheduled for auction but postponed due to the Covid situation...

I only have a summary statement - looks like I will need to try and find everything associated with the case.

Thanks again - very much an education...

Sorry, Ron S. - Missed your question at the end.  The property is in NM.  I have found some additional information - a helpful clerk in the court office pointed out where I could find the filing.  

It gets a little more complicated.  It appears there was an initial mortgage at time of purchase.  4 years later, another for 100k more was executed.  After that, what the document is calling a second & third mortgage for lesser amounts were issued.

In the court documents, the defendants include the initial lender, as well as the other lien holders - the HOA, the local government, the US government, and the 2nd & 3rd mortgage lenders.

It looks like the company issuing the  Lis Pendens bought / obtained the paper from the lender (what they are calling the 1st mortgage, but is really the second) and is the plaintiff in the case.

I am guessing (unless the original amount was paid off) it is therefore a foreclosure by a junior interest.  I am also guessing that since the original lender is a defendant in this, that the first load was not paid off...

Not sure if this helps clarify any input, or just raises more red flags.

Any comment / insight is welcome!

Thanks,

Dave

Thanks, folks.  Very helpful.  Will do as recommended.

I am looking to dip my toe in the foreclosure market for the first time, and would like some help to clarify the many (sometime conflicting) inputs on the status of liens associated with a foreclosed property being sold at auction.

My interest in this property is two fold - I am out of state, but own I piece of property close to the foreclosure.  The objective is to fix up the foreclosure property and flip it (or rent) and also use it as a base to develop my current piece of property to become my permanent home.

The foreclosure estimated price is about $450,000.  I am guessing the market price for the fixed up house is about $600,000.

The foreclosure property is complicated.

There are approximately 25+ liens on it, with multiple mortgages, HOA, local property taxes, and federal taxes. I have spoken to the county clerk as well as the trustee, but neither of them can or have provided much information. I have reached out to the owners to buy it from them, but have not gotten any responses.

On top of the lien, it is my understanding that the house is still occupied.

Questions:

What liens stay and what liens go with a foreclosure? It is my understanding that the HOA stay & the federal tax go after a buyout period. What about local taxes and other mortgages? How to fined out if the foreclosure is by the primary or junior mortgage lender? Does it matter?

How much does eviction usually cost if that is required?

What is the thought process around discounting for the lien risk?

Is it better to wait and assume that it will not sell, and buy from the bank at REO?

What is the best way to get in touch with the bank to make an offer on the property - will the trustee provide that information at that point?

Would a title company or real estate attorney help with this process?

Thanks to everyone reading this and commenting - it would be about $1k to travel out for the auction, so I want to avoid that if it is a waste of time and money (and health) flying out to the auction.  

Thanks,

David