second mortgage obligation

[wilshire]

What is the name of your state? Michigan

I recently sold a property that was in foreclosure process. It had gone to the sheriff's sale at the 6th month. I was able to find a buyer and paid off the amount due. However, the second mortgage did not show on title and was therefore not included in the pay off amount. Am I obligated to pay the second mortgage? They did not have a lien when the house was sold.

If the mortgage was recorded in the land deed records AFTER the foreclosed mortgage was recorded in the land deed records, then it died in the fracas.

If the mortgage was recorded in the land deed records BEFORE the foreclosed mortgage was recorded in the land deed records, then it is alive and well.

But the title insurance policy you took out when you bought the property should tell you for sure if the lien is still active.

[HomeGuru]

Originally Posted by wilshire

What is the name of your state? Michigan

I recently sold a property that was in foreclosure process. It had gone to the sheriff's sale at the 6th month. I was able to find a buyer and paid off the amount due. However, the second mortgage did not show on title and was therefore not included in the pay off amount. Am I obligated to pay the second mortgage? They did not have a lien when the house was sold.

**A: yes, you were and remain liable.

[HomeGuru]

[quote=seniorjudge]If the mortgage was recorded in the land deed records AFTER the foreclosed mortgage was recorded in the land deed records, then it died in the fracas.

If the mortgage was recorded in the land deed records BEFORE the foreclosed mortgage was recorded in the land deed records, then it is alive and well.



**A: huh?

[wilshire]

When the title work was pulled for my buyer, there was no record of the second mortgage. I sold the house during the redemption period and the new owner has a waranty deed with clear title. Since technically the second mortgage was not paid off directly in the sale, will they come back to me looking for their pay off?

[HomeGuru]

Originally Posted by wilshire

When the title work was pulled for my buyer, there was no record of the second mortgage. I sold the house during the redemption period and the new owner has a waranty deed with clear title. Since technically the second mortgage was not paid off directly in the sale, will they come back to me looking for their pay off?

**A: ok, sj, your turn.

Writer, okay, tell me what you are talking about and I will try to answer.

Give me a timeline.

Who did what?

[HomeGuru]

[quote=seniorjudge]

Who did what, when how and why?

[Rhubarb297]

[quote=HomeGuru]

Originally Posted by seniorjudge

If the mortgage was recorded in the land deed records AFTER the foreclosed mortgage was recorded in the land deed records, then it died in the fracas.

If the mortgage was recorded in the land deed records BEFORE the foreclosed mortgage was recorded in the land deed records, then it is alive and well.



**A: huh?

Seniorjudge is a positively excellent resource on this forum, except when it comes to real estate questions. Clearly not his area. HomeGuru, you're right. Seniorjudge continues to believe mortgages are not valid as liens until they are recorded. He is wrong.

[I AM ALWAYS LIABLE]

Originally Posted by Rhubarb297

Seniorjudge is a positively excellent resource on this forum

My response:

I guess that leaves you out . . . right, Dufus?

IAAL

Originally Posted by wilshire

What is the name of your state? Michigan

I recently sold a property that was in foreclosure process. It had gone to the sheriff's sale at the 6th month. I was able to find a buyer and paid off the amount due. However, the second mortgage did not show on title and was therefore not included in the pay off amount. Am I obligated to pay the second mortgage? They did not have a lien when the house was sold.

Please tell me what you mean by this.

Did you have title insurance?

Did you have a title insurance company run a foreclosure report before the foreclosure?

What did it say?

Is the second mortgage recorded?

How did you find out about it?

When did you find out about?

Thank you.

[wilshire]

In Michigan, the house goes to sheriff sale after the 6 month of default. You then have another 6 months to redeem. The redemption is handled by a legal entity. When I found a buyer, the mortgage company ordered title and ordered a pay off. The title now showed a bank as the trustee and a payoff amount that would not include the second mortgage. The house was sold to the new buyer and the bank trustee on title was paid off. What happens to the second mortgage? Are they gone, or will they look to be paid off by me?

Originally Posted by wilshire

In Michigan, the house goes to sheriff sale after the 6 month of default. You then have another 6 months to redeem. The redemption is handled by a legal entity. When I found a buyer, the mortgage company ordered title and ordered a pay off. The title now showed a bank as the trustee and a payoff amount that would not include the second mortgage. The house was sold to the new buyer and the bank trustee on title was paid off. What happens to the second mortgage? Are they gone, or will they look to be paid off by me?

Since you won't answer my questions, I will just say that if the second mortgage was not killed by the foreclosure, then you owe it. Just a guess.

[wilshire]

Please tell me what you mean by this.

Did you have title insurance? Yes

Did you have a title insurance company run a foreclosure report before the foreclosure? Not sure what this is.

What did it say?

Is the second mortgage recorded? Not sure.

How did you find out about it? I was paying on it before default

When did you find out about?

Sorry- I will try to get the rest of the facts.