[Newshound]

A house I financed is about to go into forcloseure due to another mortgage company who gave buyers a no money down high risk 80/20 loan just to collect thousands in commissions.

I have a recorded land patent on a house I built and filed it at the recorders office in 1998, then I sold the house in 2007 and financed the buyers(partially on the full sale price) with a $200k note;

In order to buy this house, like I said, the buyers took out two other morgages on this same property for more than twice that amount and now can not pay me or their mortages companies.

If I filed a lis pendens on this property, would I be able to then sell this house at auction and keep the proceeds or would I have to take the other two mortgage companies who today also have liens on this same property to court first? And would I have a chance of winning if it went to court?

Exploying my options.

Thanks

[excon]

Hello n:

It's NOT a matter of who sues first. It's a matter of what position your loan is subordinate to. It would appear that you are in third place. Therefore, if a foreclosure happened, and there was anything left after the first two banks were paid off, you'd get it.

I don't think your land patent gives you a higher position - but it MAY. I'd visit a real estate lawyer and ask him.

excon