my loan update

  • November 03, 2016 10:10 AM
    Message # 4362537

    Hi Classmates.  Thought I would share with you the status of the loan I purchased along with the ThinkTank Workshop in hopes that somebody can learn something!  I decided to pull my Thinktank note off the shelf today and see if there was any update on the foreclosure that the Senior Lien had started.  I went to Netronline and found that 1) A Final Judgement had been recorded after my Assignment was recorded.  On this Final Judgement document, they were still serving/notifying the originator (First Franklin Financial) instead of my company.  My company was not listed anywhere on the legal documents.  I also noticed that 2) after the Final Judgement was recorded, there was a Order Canceling the Sale, Vacating the Final Judgement, and Dissolving the Lis Pendens.  I left a message for the attorney representing the Senior Lien and a message for the attorney representing the borrower.  So, I guess my goal when, and if, an attorney calls me back is to 1) ensure that my company is listed as a defendant should this case continue and 2) find out what the borrower's intentions are now that he has awakened and obviously decided to keep his home.  Any suggestions on what I should say to the attorneys when they call?  Any comments on strategy?  What would have happened if the sale took place?  Would the originator (First Franklin Financial) have received a notice of some sort with an offer to clear the cloud from the title?  Or would that happen, when the new owner went to sell the property?  Could First Franklin have accepted just say, "yeah, send us a check for $2,000" and then I have a lawsuit on my hands?  

  • January 03, 2017 4:23 PM
    Reply # 4505490 on 4362537

    The why things happened may be more important than what happened. Lis Pendens may be dismissed for failure to prosecute or because the homeowner came up with a crazy story in which the Judge gave them the benefit of the doubt while the Sr. Lien has yet to re-file. Anyway, calling them is not constructive3 notice. Re-filing your Assignment is likely not necessary but you may want to investigate that state's version of a 'request for notice'... otherwise, they will not care that you may want notice as applicable statute or law only dictates they notice the entity listed in the upper left portion of your recorded Assignment.

    The Sr.'s attorney may not tell you anything as they don't likely know anything beyond the file is open and they haven't received instructions to re-file, the foreclosure has been transferred to another lawfirm or it was closed for whatever reason. Debtor's counsel will not likely talk to you as that would incur costs which the homeowner hasn't authorized but it doesn't hurt to try.

    Strategy... first find out if the 1st really is current, if so, hit them hard and proceed with the right and remedies available to you depending on the numbers your equity position, if any). If the sale took place, your lien is gone and not a title issue. They wouldn't need to pay you as proper notice was undoubtedly sent out.

    First Franklin would not have received any money and if, for some reason they did, the homeowner may have an attorney general complaint as they were defrauded by someone who accepted funds on a note they didn't own. Therefore you wouldn't have a lawsuit, as you are still owed 100% but the homeowner would have a suit or appropriate complaint. 

    Last modified: January 03, 2017 4:24 PM | Matt Kelley
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