Watch out how you take title to the property now.

Posted by Ward-CA- on February 20, 2003 at 10:32:24:

In Reply to: What about the second posted by Confused in Michigan on February 20, 2003 at 03:46:30:

: My home went to sherriff sale 11/2002 and was purchase by a private investor at sherriffs sale. However I have a second mortgage with a bank that is current. My combined LTV is close to 100%. The purchaser of the first lien is offering me a deal to rebuy my home on land contract. My question is what is the legal status of my second lien? Is it in default? Can I maintain it as is and keep making payments, if I do a land contract with the purchaser of the my first lien. Lastly what risk does this purchaser have from my second lienholder? Are they incumbered by it?
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Confused,

The foreclosure of the senior 1st wiped off the title of the property all junior liens and interests, including the 2nd lien.

So your 2nd is no longer against the title of the home you once owned.

I suggest that if you buy your home back from the winning bidder that you do so under a different name or use an entity like a title holding trust.

Otherwise you run the risk of having all the wiped off liens automatically reattach to the property when you take title in the same name you used before.

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: : My home went to sherriff sale 11/2002 and was purchase by a private investor at sherriffs sale.  However I have a second mortgage with a bank that is current. My combined LTV is close to 100%.  The purchaser of the first lien is offering me a deal to rebuy my home on land contract.  My question is what is the legal status of my second lien? Is it in default? Can I maintain it as is and keep making payments, if I do a land contract with the purchaser of the my first lien. Lastly what risk does this purchaser have from my second lienholder? Are they incumbered by it?
: =============
: Confused,

: The foreclosure of the senior 1st wiped off the title of the property all junior liens and interests, including the 2nd lien.

: So your 2nd is no longer against the title of the home you once owned.

: I suggest that if you buy your home back from the winning bidder that you do so under a different name or use an entity like a title holding trust.

: Otherwise you run the risk of having all the wiped off liens automatically reattach to the property when you take title in the same name you used before.


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