Tales from the other side, part 2

[Anonymous]

So I told y'all about having to forclose on a house we sold in August of 2006. Well, there's been a new horrific development.

I had an attorney examine the title on the property and he discovered two liens that have been placed on title on debts owed by the people we "sold" to.

One is for taxes owed the city: $23,000.00

And that's the little one.

The second one is for a business loan: $700,000.00

Yes. That's SEVEN-HUNDRED THOUSAND dollars.

If I get the deed-in-lieu of foreclosure, the liens stay in place. So, I can't sell the property, can't re-fi and neither can my buyer. I would have to do a full court ordered foreclosure, sell the house at Sherrif's auction and pray to Mary, Jesus and God that it sells for more than I owe on it. If it sells for less, I would be resposible for making up the difference.

And that's why mortgage companies put you throught the ringer for a loan.

[Anonymous]

Oh my gosh Tex!!! I am so sorry. You couldn't dream up anything this horrible.

[Anonymous]

Thanks, Lori!

[Anonymous]

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TexMontana wrote:

So I told y'all about having to forclose on a house we sold in August of 2006.

...

I had an attorney examine the title on the property and he discovered two liens that have been placed on title on debts owed by the people we "sold" to.

---

Whoa! Hold up.

You sold the house to the folks in there now, so you were just doing seller financing, right?

[Anonymous]

They assumed mortgage with Countrywide, we carried second.

[Anonymous]

IIRC, you're in Oklahoma. Is this house in Oklahoma?

[Anonymous]

Noah-

Yes and Yes.

[Jacque383]

Hi TexMontana,

I am one of those that buys repos all day long (I'm the 5'5" blonde in the back who bids right before the gavel strikes "sold.")...I see this stuff all day long at the court house auctions, private auctions and in talking to way more sellers over these past 6 months.

Anyway, this loan for the business....Is the business still operating? What type of business?  Do you know whether the owner has any other assests of value?  Assests in the business? Is the first mortgage current? What's the home worth? How much is the first loan? How much is your second?

Try to post more information and I'll tell you what I know...

[Jacque383]

By the way the tax liens will always take precedence over mortgages or any other lien.

However, other liens go in order of the date they were recorded. I assume you recorded a lien with the county? Things may not be that bad if you recorded and may be next in line for payment after the sale.

 You didn't give us any numbers as to present value, how much the first is and if they are current or in arrears with the first.

[Anonymous]

The first is not in arrears. My place in line is firm - the sale was a paper sale - no money exchanged. I'm not certain that the lien by the city is for taxes - it's not income or property taxes, more likely sales tax that the buyer never paid from his former business.

The first is about $110K. Mine is $60K sales price was $170K. Presently the home is worth about $160K-ish.

Talked to the attorney again yesterday- he's got some ideas as to how to get them out NOW. Which is what I want. Seller claims liens shouldn't be there as the debts were included in BK. In Okla, you can go online and lok at court dockets, which I did. Holy jeezum-crow- these people have been sued (and lost) about 12  times. I don't think they have ever made good on a debt. Hotel business- Foreclosure, Home-Foreclosure, Student loans- Judgements, her salary (she's an elementary school teacher) are being garnished.  It goes on and on. And the two debts which are now liens- neither was noted in the court records as having been included in Bk. Makes sense- I don't think one can include taxes in a ch7 bk.

My first goal, like I said, is to GET THEM OUT. I called him yesterday to let him know about the liens. Left a voice mail. He doesn't bother calling back, replies by email. Really flippant - Oh, I emailed my attorney about this. Don't worry about it. RIGHT! If I were in his shoes, I would have those BK papers out so fast they would catch fire. He knows he's bs-ing. I sent him copies of his court records (so he would know I saw them) along woth a letter offering him a dee-in-lieu of foreclosure (again). Told him I'm sure he doesn't want me to do everything I CAN do - judgements, garnishments etc. He'll get it in the mail today, so we'll see.