Foreclosure Question
Hello. I'm extremely new so please bear with me.
We are in the process of pursing a forclosure. We have been to the county researching which we are still very new at. We also have been in touch with the person being foreclosed upon. We just found out today that the person name in the foreclosure let’s call them Party “A” quick deeded the property to someone with the same last name let’s call them party “B” in 1998. Here is my question. Doesn’t party “B” now own the property and if so how could party "A" still have a mortgage that is being foreclosed upon? I also trying to get in touch with the attorney handling this, but have yet to hear back from her. I was hoping someone here could educate me. Thanks. 
kgerosa,
By "quick deed", I assume you really mean Quit Claim Deed. Just because I deed you my interest in a piece of property does not release me from the liability of repaying a loan in my name. If that loan is secured by a mortgage on the property, the lender still has the right to foreclose on the property to satisfy the loan if the loan goes into default.
Here is one scenario to explain what is happening. Mother buys house and takes out a loan to finance the purchase. Mother gives lender a mortgage on the house to secure the financing. After several years, Mother decides that she wants daughter to get the house when she passes on, so she "deeds" the property to daughter. Mother continues to live in the house and pay the mortgage. Mother eventually moves into a nursing home and turns her affairs over to daughter. Daughter fails to keep up payments on Mother's mortgage. Lender starts foreclosure proceedings against Mother because she still has liability for the loan payments.
David T,
Thanks for the quick reply, being able to decipher my e-mail and the clarification of Quit Claim Deed.
Going back to the property we are looking at and really just trying to understand the process.... If I wanted to pursue this property I would not only have to research the people being foreclosed upon and what leins are on the property in their name but now also the people the property was Quit Claimed to in 1998. If it still looked like a good deal, I've contact the attorney and discussed settling the leins, I would need to go to the people that were currently name on the deed and get them to Quit Claim Deed it to me. Make sense? Am on the right track?
Sticking with this house just looking at it from another point of view....If it goes to auction, and the persons currently name on the deed do nothing they just loose the property?
Hope or anyone has time to answer. Thanks for the advice -- this is a great forum.
Kim --
Hi Kim,
Welcome to TCI. I commend you for being a go-getter and getting out to the streets---it's a good way to learn--but I have to say that it's good to have the basics down. I want to say this gently because sometimes you can just fall onto a deal.
I don't know if you've had much time to study here but let me tell you it's a GOLD MINE of info and if you really committ to studying (it's kinda like learning a whole new language---was for me anyway--got that darn artist brain thing to deal with) you will increase your chances of getting LUCKY.
If you want to do a search just click on articles or forums and then click on search and then enter whatever your heart desires---I've gotten lost for days in those archives ---my fam was going to glue a paperplate with a face on it just so they didn't have to always look at the back of my head!!
As you read write down questions and then sometimes they'll get answered in the very next post or article---if not just post it here and someone can point you in the right direction.
Keep coming back and staying in touch.
I wish you all the best!
Mel
Thanks Mel.
I have studied, but not nearly enough.
I know what you mean about getting lost in here. I signed on yesterday just to do a post and got into a bunch of stuff and before I knew it a couple hours went by. The more I read the more question I have. Thanks for the welcome.
Kim
Kim,
My pleasure! I can't wait to track your success!
Funniest thing---I stuuudy and then when I get in the middle of a deal I say "Now how'd that go again?" It's kinda like walking down the street while reading a book---hitting the streets looking for deals and learning as you go AND all the while studying your brains out.
I'm jealous of all my mentors here that seem to just breeze along---they are past the major uphill learning curve .
All the best to you,
Mel