Another techie office job (and another lay off) later, I decided to become an arms dealer, obtained my FFL/SOT, and also became a licensed firearms trainer.

an owner called me, his house is about to be foreclosed on (tax lien holder filed for foreclosure rights of redemption). the property is paid off but needs a lot of work.does the seller has to file any papers in the courthouse once the property is under the contract (to stop/delay the foreclosure process)?

It's a short sale and they've got 30 days to get the lien holder approval (they actually advertised it as pre-negotiated, but wanted 90 days for this).In the meantime, I want to keep searching and making offers on properties.My Realtor doesn't seem to be inclined to make official low ball offers - his reasoning is that it's "insulting" to the seller's agent and wastes everyone's time.

Their brochure holders are always empty, the properties are NEVER advertised, and the list goes on.

Steve, I did find out that if there were other outstanding liens before the sale the lien holders have the right to replace the liens on the property once the debt has been cleared.

Doing so under those circumstances carried criminal penalties.Another aspect of filing a bogus mortgage is imputed interest rates for the holder if they are too low or interest income and if not recognized becomes a tax evaision issue.Lastly, if you use a deed of trust, with a grantor, grantee and trustee where the provisions of the trust and obligation are made between related parties or the same entity, it may be easily established that the filing was done for some other purpose other than that recited in those instruments and found to be a sham transaction.

The good news is that it does not cost you as the note holder anything!

The cream-holders who are now flat busted WILL be saved from the world of we minions, I assure you...

Make him keep explaining until you understand it.A real possibility, because you are not on the mortgage, is to simply inform the bank that the mortgage holder is deceased and sign the house back to them in what is called "in lieu of" meaning in lieu of foreclosure.

If you sell the home, you should transfer the title and become a lien holder.