Baffled 2nd Has Not Forclosed
Has anyone ever heard of a lender not forclosing on a note that has not recieved payment in 6-7 years?
Backround:
In 1999, I purchased property sub-2 , paid the trustee of land trust $12,500 got the deed and started making payments on the 1st mortgage which is still in the name of the original borrower. There is also a 2nd on the property, in 1999 I tried to make contact with lender of the 2nd and they never called me back. Never recieved any statements, demmands or communications. I just let it ride. To this day the lender has not made contact, No forclosure, NOTHING. I did some research and found out that the original lender was closed down by the FDIC, they held it in recievership for about 1 years and then assigned it to Ocwen federal. I now have all the info on the loan including he contact person at Ocwen. Here's the problem, I am considering taking some cash from this property to make some repairs and update appliances.
Do I attempt to make contact with Ocwen and see if I can have the loan discounted?
By contacting them do I put them in a position to proceed with forclosure proceedings?
Stats on the property :
FMV: $140,000-145,000
Bal 1st : $92,000 (FHA LOAN) Current
Bal 2nd: ??? original loan was $15,000
Any suggestions on maximizing profits with this situation will be greatly appriciated.
By the way the Original borrower did file ch 7 and the case has been discharged, both notes were listed in the filing. Is it possible that the bankruptcy quashed the 2nd? if so how would I recieve a satisfaction of loan?[ Edited by 225toledo on Date 06/09/2004 ]
Many things are possible.
I suspect someone has lost the paperwork and the 'owner' does not know they own the note. You can try to track it down but I expect this will not be easy.
It might be worth filing a court action to clean up the title. This will either flush out the note holder or permanently remove the 2nd. Make sure the process is clean and that the title company will insure the title after the fact. You will need to hire a lawyer and pay something like $2,500 (maybe more depending on the advertising requirements and if any responses come along).
John
[addsig]
OCWEN might have rejected the assignment and sent it back..... and has now fallen thru the cracks.
I would follow up with the assignment clerk, and act as if the lien were a mere nuisance... and ask to buy the note on the cheap to avoid avoidable litigation.
Well since you have a contact person at Ocwen I'd give him a call. First call I'd describe your situtation generally and ask him the question.
It wouldn't hurt to check your state law. There may be a statute whereby loans where no attempt is made to collect after ____ years expire (I know this happens with judgements and mechanics liens). Somehow seems unlikely to me but for a few hundred bucks I'd check it out.