Plaintiff Is A Bank..and Defendant A Bank???
Hi!
A Newbie question. I have been researching the "Legal Notices" in the paper, and I get majorily confused when the Plaintiff is a Bank ( that's understandable) but a Bank or Banks are sometimes listed among the Defendants. Are these possibly second mortgages or what??
Thanks for all the help!!
Another possibility is that the defendant bank is a land trust.
Hi Larry!
Sorry I didn't mention. I've seen this in the Notice of Foreclosure, Notice of Sale and so on in the Legal Notices in the newspapers. Thanks
Plaintiff will join and serve, any one that comes up in the title search that has an interest that is inferior and include them as party defendants.
Per Rickomarsh's reply...
The bank listd as the 'defendant' probably
holds a 2nd mortgage or other lien on the
property. They are listed on the NOD so
they can go to the auction and protect their
interest, if they so choose to.
Also, it is not uncommon to see the
"United States of America" as a defendant.
That usually means the IRS has a tax lien
against the property and the foreclosing bank
is notifying them. Be careful of these sales,
as the IRS can redeem the property up
to 6 months after the sale and only have to
pay the selling price. - ie. Place sells for
$100,000 - you bid and win, then you put
$30,000 in it to rehab it. IRS comes along
and can force you to sell it to them for
the $100,000 that you paid. Any rehab money
you put in? - tough luck.
Wrong info about IRS liens - they only have 120 days from the auction date to redeem the property, and they have to pay 6% interest and reasonable upkeep costs(of course, $30k in rehab is not reasonable upkeep costs).
compwhiz-
thanks for clarification on IRS redemption
period. So it's only 4 months? That's
even better.