Replies to This Discussion

Permalink Reply by Wayne Brooks on September 4, 2013 at 2:06am

Any bank uses probably 20 different attorneys in any area. Look at the filing, it's probably online. Why do you think Nationstar doesn't realize what position they are in? They do a title search, so all lien holders are notified as defendants.

Permalink Reply by Nancy Mansour on September 4, 2013 at 7:52am

Wayne, apparently they thought they were in first position, but when we did the title search for the closing of the short sale with Nationstar in 1st position, it was found that there was a first with Huntington that was never paid off from 1996. I thought it was a mistake and just needed Huntington to release the lien, but when I spoke to the asset mgr, he said it had never been paid off. So, the first and second mortgages were now in second and third position. The property was foreclosed on by Nationstar but MI has a 6 mo right to redeem but that expires on Friday. Whoever Nationstar sells this to will have to end up dealing with Huntington.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 4, 2013 at 7:59am

Nancy - I should have asked earlier - Why didn't the seller / borrower know they had a 1st mortgage with Huntington and the balance due?  They must have received statements!  It's only been 17 years on a likely 30 year 1st mortgage.....

Permalink Reply by Nancy Mansour on September 4, 2013 at 8:06am

Thom, To be honest, this couple has been very deceptive in what they have done with different loans on different properties. I don't know if it was a mistake, or since there have been other loans on this property before the Nationstar mortgage, they may have thought it was paid off. The title company that closed this last loan is out of business, so I can't even see a title policy. If Nationstar was really smart, they would want to file a claim with the title insurer and get paid in full instead of taking market value which is about a third of what's owed. 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 4, 2013 at 8:23am

That's unfortunate - sounds like you've wasted a lot of time....

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 4, 2013 at 5:15am

Interesting - Even though Nationstar is in 2nd position, they can foreclose anytime if the borrower is in default.  What I think would be interesting is to determine the amount of the balance of the 1st - if that is extremely low and the home is worth more than that balance, Nationstar is brilliant to foreclose on the 2nd.  They are subject to and will pay off the balance on the 1st (since they are "subordinate" plus they will likely get some if not all of their money back on the 2nd.  The seller / borrower was foolish to let the 2nd go into default if the balance on the 1st was very low.

As an aside example, Wells Fargo was foreclosing only on 2nds here in CA and selling those 2nds at auction without telling the "buyer" they were only buying the "note".  After they sold that 2nd note, they would then foreclose on the 1st and the person who bought the 2nd lost everything.  This was a huge story in the NY Times about two guys who were victims of this practice in Palm Desert CA.

Good luck but I think this one is "done"

Permalink Reply by Nancy Mansour on September 4, 2013 at 7:04am

Thanks for the reply Thom! I was hoping we could at least purchase the note, but I'm almost out of time.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 4, 2013 at 7:27am

Nancy - good thought BUT, Nationstar is not "dumb".  I expect they well-know what the true value of the proeprty is, the actual balance of the 1st, and how much they are going to "net" by foreclosing and subsequently disposing of this property.  It's likely they already have that property sold to an investor and are just waiting for the activity of foreclosure to occur.  I do not know the laws of MI, but for Nationstar does it matter?