Skip to main content

2nd mtg lender allowed to sell house - is this normal?

This didnt happen to me but to someone i know — it seems like a very unorthodox situation but tell me if you have seen it it and share your feelings.

2nd mortgage - very small - under $50K with a major national bank. 1st mortgage - over $200 K is with a really sleazy lender. House was appraised over $400K

Lender #2 was allowed to conduct a foreclosure sale, with the stipulation that the buyer has to “take on” Mortgage 1.

A foreclosure sale was conducted in Spring 2019. The buyer won with a bid of $59,000 and this is the reported sale price with the county / city. The buyers are listed as the owners of record.

Fast forward to late 2019. Lender 1 (again with a horrific reputation) either is reneging on the deal or could not qualify the buyer / new owner

They are now suing in a foreclosure, husband and wife that bought the property and the previous owner. The foreclosure is stalled right now because Lender 1 cannot locate the previous owner.

The only thing i could think of is Lender 1 thinks why should we do a deal with the buyers and maybe make 3,000 in closing costs when we can make $200,000 in foreclosure sale

Any thoughts?

submitted by /u/Gateway2000PC
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/evgynz/2nd_mtg_lender_allowed_to_sell_house_is_this/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Looking for Prospective Opportunities to Utilize Floor Plan Redraw Skills

"Hey HomeOwners & Investors , I have a team of 10 professionals who are trained in redrawing/redesign floor plans in both 2D and 3D interior& exterior using floorplanner.com/3ds Max and TruView point cloud. We're looking for prospective opportunities to utilize our skills. Are there any companies or individuals in need of accurate floor plans and measurement reports ? Any suggestions for where to start looking? Thanks in advance for your help!" submitted by /u/mangojuicelife [link] [comments] source https://www.reddit.com/r/RealEstate/comments/119uoh0/looking_for_prospective_opportunities_to_utilize/
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more