Owner of Mortgage Can't Be Found?

Problem - property has a second mortgage originally with Aurora and we can not find the investor that now holds it. First was also with Aurora, and is now with Nationstar, but the second has disappeared. Can't do a short sale unless we can satisfy the second and can't do that without finding who holds/services the note. We brought in a lawyer to research it out, and she has come up with nothing as well.

I recommended to the client that he try either a loan mod with Nationstar for the first and rent out the property, as it would probably break even or better without paying the second. If that didn't work, then try a deed in lieu.

Nationstar will do neither without being able to identify the holder of the second. It's not them evidently, and they can't or aren't interested in finding out who is.

So, client is stuck - he'd be happy to do anything to resolve the situation, but is in legal limbo. We had buyers for this as a short sale, but it's now off market as it can't be sold.

Any suggestions?

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Replies to This Discussion

Permalink Reply by joe beauchamp on October 8, 2013 at 2:06pm

I'm surprised that you found nothing. You knew/saw in public record that xxx had a mortgage and note. Xxx went out of business and no one took their assets? Obviously, you first tried the title co since they have to find this stuff all the time.

Ask your (real estate) attorney to do a quiet title for the missing note owner - a judge can wipe them from the property.

Permalink Reply by Joseph Kuhl on October 9, 2013 at 5:09am

Thnx, Joe. Yes we did a title search et cetera. Shows Aurora. Aurora still sort of exists, but say they know nothing.

The idea of using quiet title is a good one. Have you ever been involved in such an action? We're in NY and the attorney has indicated it is complicated and unlikely to succeed, but I don't think she has much experience with it.

Permalink Reply by joe beauchamp on October 9, 2013 at 5:24am

I am about to do one on one of my properties - Carrington Mtg screwup. I think you need to find a lawyer who deals with real estate. www.foreclosureprose.com/how-to-quiet-title/ gives you an idea.

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