All Forum Posts by: Roman M.

 You are not responsible for paying the 1st mortgage but it is a lien on the property that is superior to your purchase so you want to make sure you don't get foreclosed on by the 1st. Probably they won't talk to you because you are not the borrower. If you could find out how much the loan is in arrears and send them a check to bring it current, it will buy you some time. Other options is try to obtain payoff through the title company (they might need borrowers SSN). 

I guess $100 or $200 cash flow per door isn't such a sweet deal anymore when 50 % of tenants decided not to pay the rent and you have eviction moratorium. 

Its better to have less properties paid off then to have two times more tenants with big leverage. 

Sba loan is not forgivable at least as of right now. 

I used to have a mortgage with Cenlar. From what i recall the title company got the payoff letter and they only needed my SSN or last 4 digits. 

I am sure that when you bought the property, your title company has sellers SSN as they need it to file 1099 on the sale of the property. Additionally if prior owner filed BK then their SSN goes on BK filing. An attorney can pull BK filing through pacer service and probably get his info as well as his current contact info or his BK attorney info.

 What was the rate with Finance of America?

 I actually had title insurance company deny a $3,500 claim for unpaid city assessment. They said it was not recorded and therefore not eligible for coverage. 

So have you ever had a claim for an auctioned property purchased at the court steps that had a title commitment and there was a title issue not listed on the commitment and the underwritten wrote a check without a lawsuit or with a lawsuit?

that is a true test of the title commitment. 

title opinions are like legal opinions from different lawyers. There is always gray area. 

Dont get me wrong, I think having a title.commitment is better than doing your own due diligence however I highly doubt that they will cover any of the title defects not listed. 

I Am pretty sure that this part of the post may led people to believe that they may have title insurance coverage while the pros know that it is not possible for court steps auctions:

"(3) The contractual liability of the issuer of a property information report is limited to the person or persons expressly identified by name in the property information report as the recipient or recipients of the property information report and may not exceed the amount paid for the property information report. Only contractual remedies are available for an error or omission that arises from a property information report.

I suspect Lloyd's would rely on that statute to determine coverage."

Why would Lloyd's provide any coverage for a title commitment that is not a title insurance coverage?  If no title insurance premiums were paid than there is no insurance coverage and the title commitment will have tons of exceptions since most of them will probably be impossible to comply with at involuntary sale called auction.

If you have debt on the property then it is considered a refinance. If you borrowed unsecured then maybe you shoould allow them to lien the property and then refinance that debt. After all the mortgage broker told you that they are doing refinance of existing loans, right?

I totally see the problem with cash out because the lenders are afraid of future declining values and so they don't want upside down mortgage in case the value plummets due to financial crisis. Also if you pull all your money out then its higher risk for the lender. 

I hope things stabilize soon as this is a chaotic lending environment. 

1. If it is a mortgage foreclosure auction and the final judgement is let's say $100,000 however the lender has set a final reserve price for $85,000 than you only pay $85,100 unless someone bids more than you. Basically the lender sets the final price and who ever is a successful bidder over that price gets the property. Sometimes that price is hidden so no one know for how much the lender will let it go.

Fine print is buyer beware, any other liens like taxes or municipal lien, building or code violations stay with the property and it will be buyers responsibility.  You don't have to pay them at closing which is unusually 24 hours after auction but you need to take in account that you have to deal with them at a later time.

2nd and most important fine print: make sure you know which position of the mortgage you are bidding. If it is the 2nd mortgage that is going up for auction than the property will be subject to all prior liens which means that it will be subject to the first one. So if you bid $85,100 and get the property and there is a $125,000 first mortgage than you will eventually have to deal with the money owed on the first mortgage.

Tax deed auctions are slightly different and are a little safer because taxes wipe out all mortgages but you have to deal with building and code violations.

2. Private auctions usually give you about 30 days to close and you can get title insurance. County auctions are 24hr closing so you can't get title insurance and you have to he either a pro or just lucky.  That is why they call it buying at the court steps.