Foreclosure prevention????

Wow, I just got off of the phone with a "seller" who is feeling very confused and does not know where to turn.

From the beginning:
2004, preconstruction condo purchase as an investment, Husband on the note and deed, wife on neither

2008, Husband deeded to wife, (ex-wife) by this time, husband still on mortgage

2009 Lis Pendens filed

2010 Judgement filed

2010 Foreclosure, deed transferred back to lender

Should be over, correct?

2011, Seller's (previous owner) attorney files a mortgage with the clerk of courts on this property, seller is the borrower and the sellers attorney is the note holder on this particular  transaction

2011 Seller forms a trust and Quit Claims the property to the Trust from her personal name.... Did I mention that the bank was awarded the property in foreclosure and a clerks deed had been filed?

 

What in the heck is the sellers attorney trying to accomplish?  I would sure like to know and now the seller would like to know?

Sellers attorney told her that she needs to short sale the property/

Anyone else feel dizzy?

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Replies to This Discussion

Permalink Reply by Ray Snook on October 3, 2011 at 9:13am
Oh lord! Methinks the attorney is one sandwich short of a picnic.
Permalink Reply by Jeff Payne on October 3, 2011 at 9:32am
Ray, I think he forgot the bread, the meat and the mustard for the entire picnic
Permalink Reply by Smitty on October 4, 2011 at 12:41am
I don't get it.  Did he NOT pull title?  You're a better guy than me Jeff.  I wouldn't even attempt to figure that one out.
Permalink Reply by Jeff Payne on October 4, 2011 at 2:18am
Yes he knew that there was a clerks deed recorded.  Just starting to get more details.  Apparently the seller contested the foreclosure and the case is still open so technically the bank has the deed but the foreclosure case is not yet settled.  I will be talking to the attorney today
Permalink Reply by Cody Lampariello on October 5, 2011 at 3:30am

So basically with the sellers attorney filing a mortgage on the property if they can get the foreclosure overturned they can pursue the shortsale and the attorney can get paid as a second lienholder out of the bank proceeds. This seems illegal or at the very least highly unethical and I would be wary of how deeply you are involved in the transaction.

 

As for quitclaiming the property into the trust I am not exactly sure what the point of that is.

Permalink Reply by Jeff Payne on October 5, 2011 at 3:42am

That is how I think it went down, of course I and the seller have tried to contact the attorney and he won't call either of us back.  It looks to me like the attorney placed himself as the second lien holder and most likely is going to want paid to release the mortgage.

I am treading lightly, very lightly

Permalink Reply by Richard on October 5, 2011 at 4:15am

Hi Jeff,

 

I sent you a PM.

 

Richard

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