1st Mortgage Sold After NOD Filed
We have a small situation here, not sure how to deal with it. We have the deed to a property that has had a NOD filed on it. The property has two mortgages, both initially with the same lender. The owner received a letter from a new lender stating that the first mortgate was sold a few days ago to them. The owner had received a letter from an attorney representing the original lender a couple weeks prior to it being sold that told her that foreclosure proceedings had begun. My question is, now that the mortgage has been sold to another lender, is it still in default? There was no mention of delinquent payments in the letter from the new lender. Also, who would you contact regarding ordering the short sale package? The second mortage is still with the original lender. We'd appreciate any help or sharing any experiences others have had like this!
The sale of a mortgage in default is quite common. The new mortgagee simply steps into the shoes of the previous mortgagee... the foreclosure process is uninterrupted...
The fact that a company may hold both a first and second mortgage on the same property may be coincidental.
If you are seeking a mortgagee approved short sale on both a first and second mortgage, there should be a short sale application (and an accompanying Proposal) for each.