This sounds like a “king sized mess”… Did Imention that you can make a pile of $$$ from “King Sized Messes”…? This one may or may not be the one to make the big score, as I cannot tell from the swirling of info here.
My question is… where do you come into this deal…? Are you buying the 1st, the 2nd, or what…? You must acquire standing somehow, in order to pursue this deal… you can’t just enter without dealing with the owner, or one of the mtg holders.
With the owner in BK, the foreclosure goes nowhere, until there is a relief from the stay of Bk… You menion that the County will foreclose for back taxes… how soon does this happen…? And of course, the County doesn’t foreclose for taxes until the relief from stay is issued… They are not exempt from collection/Bk laws.
You have not given clear enough info to determine exactly where you get on this merry go round…
So…What State are you located…? What is your strategy here; what do you invision doing…? What did the Owner say, when contacted…?
There is no shortage of some pretty sloppy work out there in these foreclosures, and this one sounds like the pinnacle of the errors…
Homeowner buys home, starts business. Business fails. Home forecloses. Family files for Bankruptcy protection. Bank buys home back. FreddieMac underwrote loan. Freddie Mac puts on mkt under HomeSteps program. Home sells. Deed conveyed with typo incorrectly 4 yrs prior. Home sale falls through. Home title still recorded under foreclosed owners name. Firt mortgage holder goes to Title Co and Freddie Mac. Title policy pays off Freddie Mac. First noteholder assures me that they are walking away and not pursuing correcting the foreclosure, not worth their time and $. Why? I do my homework, Firts mortgage holder has discovered second mortgage equal in value to his 1st(Impossible they say). Second holder has filed nothing, but has lien against the correct deed. Second was insured by SBA. Foreclosure happened over 18 months ago. Taxes have been payed by mortgage company. Title remains in original owners names.
Facts obtained: I located the wwner, 1st note holder contact and 2nd note holder. Reviewed bankruptcy procedings.
I assume the upside of this deal is great, but recognize the pitfalls. What should I do? Eventually, the county will foreclose(delinquent taxes), take possession and negotiate away the other liens.
Is this worth my time? I have already found a seasoned and reputable RE Attorney through referal. What should my next step be?