newbie help...........

[ejegreg]

Just stumbled upon this site...
Sorry am in a hurry, will return tonite.
Question, we have went thru the foreclosure procedure all the way to the sheriffs sale to be held on march 25th. But to my surprise, I have not seen the mandatory auction notice in the paper.( indiana ) I called the opposing counsel, the sheriff personel and finally Litton Loan in Texas. They said the sale is cancelled and the loan has been written off... WHAT ??????????
This was late last week. And today, got a notice that the loan was paid off and we should now get our own insurance on the peoperty.
I called an agent again and this was confirmed..
Ok, what's the next step now ?????????
I will really appreciate any help..
A BIG THANK YOU !

Welcome to the forum and thank you for joining...

When was the loan originated, who originally originated it and how did it sell out, to whom, etc...What was the loan type 3/27, 2/28, I/O, was it a refinance or purchase transaction? Is this a Second Mortgage or a First Mortgage? What state are you in? What was the loan amount and value of the property then and now?

Please let us know this information and any other information that you think may be helpful.....the write off, is and could be mixed blessings as they may have sold the written off loan as an unsecured obligation to a collection company.

Please let us know the answers to the above questions.

[ejegreg]

I do not recall the original lender of this mortgage. It was sold within the first month of it's inception. The loan was written about 4 years ago. It was a complete refinance, owner unoccupied. It was a 90% ltv. Loan amount was 70 k. We had a renter in this property and he moved when we informed there would be a foreclosure coming. He was remodeling the place but now as the property sits, It won't appraise for more than 20-30 k, if that.
Any ideas ???
thanks so much.

[ejegreg]

You replied "the write off, is and could be mixed blessings as they may have sold the written off loan as an unsecured obligation to a collection company".

Since this scenario is an unsecured obligation:confused, can the property be quit claimed ??

You really need to have the local title company do a research expedition to determine if the Deed of Trust was released. I find it difficult to believe that the lender just wrote the loan off and released the Deed of Trust.

What I meant by the write off was they write loans off, well the debt to a debt collector for so much on the dollar and then that debt collector pursues the debt. This occurs commonly on Second Mortgages...

I am assuming that they did a preforeclosure appraisal on the property and as the valuation was so diminshed and the condition was poor that they are writing the debt off and will pursue other methods of collecting.

As for the Quit Claim Deed issue, you will need to contact an attorney to determine if you have the rights to do that.

You will be contacted about the debt, as they are going to pursue collection on this debt, that is common in these cases where it is not worth it to foreclose on the property. In some cases they leave the security on the property and do not release the Trust Deed so that when you go to sell the property there is a lien that has to be negotiated for payoff. That is why I would recommend that you contact a Title Company to see if it has been release, I doubt it.