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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Excellent question, but... Posted by JK (the other JK) on March 11, 2010 at 11:49 PM In Reply to: Recourse on second TD posted by Stuart on March 11, 2010 at 7:56 PM : Purchased a property a year back for a friend who was losing it. Had a first and a second. When I bought it, for me, and every other third party, the second was wiped. Former owner is trying to get financing to buy it back. Title company is saying that the second will remain a lien against the property, elsewise they will not insure. : The first is a non-recourse and gone, but the second continues to report to credit agencies, and has presented the above problem. : Anyone have insight into what the law actually is with respect to seconds and the ability of the second to continue to collect and cloud title? We could use a few more details. When you say you bought it, do you mean you bought it at foreclosure auction? If so why would the Title company be claiming that the Second is still there? Are you sure a subordination agreement wasn't signed? Perhaps it's time to consult another Title Company. As far as collection efforts go, we need to know whether the Second was a Purchase Money loan (in other words he got the loan to BUY the property) or a refinance loan (also called a Sold Out Junior Lien) which is actionable for a Default Judgement. It is my opinion if the Second was a Purchase Money loan that got wiped out (YES RICK I WROTE OUT!!!) and they are still reporting to credit agencies the collection company is in violation of the Fair Debt Collection Act and the previous owner should consult an attorney. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Purchased a property a year back for a friend who was losing it. Had a first and a second. When I bought it, for me, and every other third party, the second was wiped. Former owner is trying to get financing to buy it back. Title company is saying that the second will remain a lien against the property, elsewise they will not insure. : : The first is a non-recourse and gone, but the second continues to report to credit agencies, and has presented the above problem. : : Anyone have insight into what the law actually is with respect to seconds and the ability of the second to continue to collect and cloud title? : We could use a few more details. When you say you bought it, do you mean you bought it at foreclosure auction? If so why would the Title company be claiming that the Second is still there? Are you sure a subordination agreement wasn't signed? Perhaps it's time to consult another Title Company. As far as collection efforts go, we need to know whether the Second was a Purchase Money loan (in other words he got the loan to BUY the property) or a refinance loan (also called a Sold Out Junior Lien) which is actionable for a Default Judgement. It is my opinion if the Second was a Purchase Money loan that got wiped out (YES RICK I WROTE OUT!!!) and they are still reporting to credit agencies the collection company is in violation of the Fair Debt Collection Act and the previous owner should consult an attorney. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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