Posted by Mr. and Mrs.Charles Evans on June 04, 2007 at 13:10:53:
Who can I talk to about an issue with our mobile home,that was purchased in the year of 2000.We made a down payment of $10,000.00 and our payments are $300.00 a month,and these people are telling us that we still have’nt made a payment on our mobile home.
First of all we have been making payments over seven years now and they are still harrassing us about our payment.If you could help me to a direction of who can help us we would really be so greatful for your help.
Sincerily
Mr.& Mrs Charles Evans
Question for Foreclosure pros - Posted by NewbeSue
Posted by NewbeSue on June 03, 2007 at 20:11:06:
OK, here is a question for REAL foreclosure pros.
I own a first trust deed on a house in CA. Last year, the borrower got a second, which we didn’t know about, however, our loan documents didn’t prohibit a junior loan, nor did they require for us to OK the borrower getting a junior loan.
Now we are foreclosing on our 1st TD, and the borrower wants to give the house back to us in lue of foreclosure. However, (here is the trick question), are we obligated now to pay on the 2nd loan that’s in the borrower’s name? If we don’t, can that 2nd lender foreclose on US??
If that 2nd lender forecloses on us, will it go against the borrower’s credit (he’s the borrower after all), or will it go against the title owner, i.e. me and my husband?
Alternatively, can we refuse to take the house back in lue of foreclosure? What if the borrower just records a grand deed in our name without telling us, and we’ll just find about becoming the new owners when we get the recorded title in the mail?
Thanks for responses.
CA Deed-in-lieu Issues - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on June 04, 2007 at 20:52:15:
Sue - You are right to be concerned. Accepting a deed-in-lieu of foreclosure will generally obligate you to accept the deed subject to the secured debt which is junior to your (1st) TD.
Homeowner’s who have had what they think is a similar experience with a bank or other lender concerning a consumer loan often erroneously believe that they can just “turn in the keys to the lender” and be done with this.
I could ramble on for some time about the issues here but surfice it to say, you’d be saddled up with all of their junior debt, including any involuntary debt like tax and judgment liens. You might be able to perfect title by foreclosing on yourself later but that’s awkward, time consuming and an extra expense. Plus, you’d need to have another entity to acquire the interest in.
If the borrower records a grant deed in your name and you become aware of this, you can find a somewhat rare document called a Notice of Non-Acceptance of Deed (which I call the “anti-deed”).
Alternatively, if you accept a deed in another entity other than the one that you own the 1st TD in (such as a title holding trust held by a coporate or LLC trustee) you can then continue the foreclosure without need for or concern about a deed-in-lieu agreement or its ramifications.