Interesting Foreclosure Story
Just in case anyone is interested, I thought I would post an experience I'm presently going through...
Home underwent foreclosure in May, homeowner's redemption period expired
We bought redemption rights on state tax lien and filed Intent to Redeem
Homeowner gave 2 $100 mortgages to his girlfried and she recorded mortgages and intent to redeems (junior to us) on the last day of homeowner's redemption
My attorney called and offered to pay off mortgages; girlfried declined
We redeemed property from 1st mortgage company
Girlfriend assigned mortgage to investor who redeemed us out to the Sheriff with one of the $100 mortgages
Investor sold property the same day to another investor, who has since started major rehab on the home
We rejected redemption under the premise that the mortgages were invalid and have since filed a Lis Pendens on the property asking the court to award clear title to us, stating that the redemption was invalid because the mortgages were invalid under state law
... We will see how it plays out. I just wanted to post it as a "heads up" to any investors using this tactic of getting little bogus mortgages from the homeowners with the intent to redeem the property that it may be illegal and if this all works out the way we believe it will, precedence will be set here with regard to these redemptions. On this one, the homeower, the investor and the 2nd investor were all in on this as a way to basically extend the homeowner's redemption period, defraud any creditors he had (the foreclosure wiped out junior liens) and still enable him to receive funds by "selling" the redeeming instrument. Shame, shame, shame!!!
I just thought y'all might find this case interesting - I'll update how it turns out when it's all over with.
Comments(0)