Doublewide and land purchase

[jim]

Well, I will sit back and wait now that I think I have most all the information everyone can provide me. I will have to see if we get a call back on this. It seems most of the property in this area when it is a foreclosure type sale usually ends up being owned by a realtor and the general public usually doesn't get an opportunity or consideration to purchase. I will be sure to follow up on this forum to let everyone know my experiences and results of this type of purchase. Thank you to everyone for the help and for reading my posts. Regards, jim

[jim]

Just to update, I went to the County Clerks office today and searched for liens on the property to find out what the loan balance was for the home and property. I found that in addition to borrowing for the home they also borrowed for the land and it has not been paid for either. I am working with the lender for the home to come to a payoff amount but am wondering how to deal with the loan amount on the property? I don't want to waste money on a lawyer to find out this sale isn't going to happen. Should I just call them? Any ideas? Let me know. Thanks, Jim

[jim]

Ok, I read the mortgage and found that the owners did indeed include the house and land together in the first 30 year mortgage but then a year later, took out a second mortgage on the land/home for $20,000. It states in the first mortgage that they are not allowed to do this but the money was loaned anyways. Question, Am I obligated for the second mortgage amount? I know I will get an attorney when the time comes but any and all opinions about legal solutions are always helpful. Thanks, Jim

[jgn]

A second mortgage is subordianate to the first mortgage and you would have to satisfy both to take ownership of the property. Sounds like they were way upside down but just make sure you look out for #1 which is you. Make an offer on an appraisal not on a feeling.

[rmurray]

The other poster is right..except...the second mortgage is subordinate to the first...but..

The first mortgage holder during the forclosure will have to notify the second mortgage holder...the second mortgage holder will have the right to payoff the first and take the property...If they are not willing to pay this much ...they will be notified of the foreclosure auction and will be able to bid along with any one else...including you...

The point is..once the first mortgage holder goes through the foreclosure and aquires the deed...you would not be obligated to pay the second...they would be out their money...

Foreclosure process are different in every state..this is why an attorney is worht the investment...You can bid at the foreclosure auction..These are actually held on the courthouse steps in many counties...The first mortgage holder has the right to bid up to the total amount of the mortage...Most often they would bid until they thought they had recovered the most they could...Bidding at foreclosure auctions requires great care...You have to be careful to be sure other liens that are not subordinate to the mortgage are clearly understood..example we talked about is back real estate taxes....also federal and state imcome tax liens could be a problem...title searchs will also disclose any unsatisfied mechanics liens...such as any land improvements that were not paid for..example a fence...The contractor can put a lien on the property...If the lender ends up with the property after the auction...they will be able to sell it to you with a full warranty deed...clear of any problems including any back taxes..(they will have to pay them)..or you can buy at the auction and you will get a limited deed...goes by different names in the various states...sometimes called a foreclosure deed...This means you have bought the rights of the 1st mortage holder..but may still have other liabilities to satisfy...All of the above means that if the property is desireable, you are a cash buyer...it could be worth the cost of an attorney for guidence...If nothing eles you will learn lots about the complex world of real property..

Good Luck

[jim]

Your information was helpful in regards to liens on the property and I will return to the County Clerks office and check to see if there are any more liens on the property. I am thinking that once the first lender has the deed from the auction that the other lien holders are out the money unless the bid for the property. I believe they had the opportunity to do that already. The recovery manager said that he was waiting for the Judge to sign the paperwork and then he could give me a price. Now he says to call after the 15th of August so I will wait until then and continue my research. I am going to see if I can find the results of the auction somewhere to see what the bid price was. I am only offering what a reasonable market value is for an "as is " property but if I can find out what the lenders bid was it may help. Thanks much for all the help. Jim

[rmurray]

State, local and federal income tax liens will not be filed directly on the proerty..mechanics liens will...A title searcher also check the former owners other liens and jusdgements..all that have an interest in this and any property that they have...Again..a professional title search only costs about $100..any title company will do this..

Check with the county clerk of courts...You can get a copy of the forclosure and the date/location of the auction...Then you can attend and see how it goes yourself...

[jim]

I went to the County Clerks office today and what they had available was a Les Pendes (notice of pendency of action dated June 27, 2003 listing the second lein holder as a defendent also along with the owners. They told me they did not have the auction date information I was looking for. They gave me an "index" number and said to check it later? I checked the local papers back to April 1st but found no notices their, lots of others though. I am not sure if the auction has taken place yet or is in the future. I am thinking it hasn't happened yet as this notice as just filed June 27. I will keep looking for information on it. Thanks again for all the information. This has been an excellent learning experience for this type of purchase.

[adam lukose Sr. Loan Officer]

Hello,

I am a loan officer with southern star mortgage corp. in NY. I work on foreclosure bailouts and manufactured home purchases. Contact me if you would like to get pre approved or hear some options.
866-281-5363 ext 1028

Adam Lukose
Southern Star Mortgage

[carla gladman]

How do I find listings of mobile homes being auctioned off for mechanic's liens... in California?

Carla Gladman