InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Texas trustee's notice obligation to junior lienors... Posted by Ward-CA- on February 19, 2004 at 3:19 PM In Reply to: Federal Judgment Notification posted by Daniel Stephens on February 19, 2004 at 1:11 PM : Here's a good one for you Ward! BTW, you are great and you look JUST like my own foreclosure mentor here. I've got to send you a picture. : Anyway, I purchased a home at a Texas Trustee's Sale a few months ago. The Trustee that conducted the sale missed a valid federal judgment that behaves just like an IRS tax lien, and therefore didn't notify the US Attorney's Office to trigger the redemption period(as they would the IRS). There were no excess proceeds. Later, I ended up having to pay an additional $26K to the government to clear the title and prevent the US Atty from foreclosing (executing) on me! : Is there any recourse against the bank, trustee's firm, or title company that they subcontracted to do the faulty search? : Any advice is greatly appreciated. ================== Daniel, You may or may not have an action against the Trustee. It depends on whether or not a foreclosing trustee is obligated by Texas law to notify, besides IRS, all recorded junior lienors and interest holders of their impending foreclosure sale. Here in CA the foreclosing trustee is obligated by law to give notice of the impending trustee's sale to all recorded junior lienors and interest holders. If they fail to do so, and as a consequence the overlooked lien remains on title after the foreclosure sale, then the trustee will have to do whatever it takes to remove that impediment or face a lawsuit over the issue. In this instance you've cleared up the title to the tune of $26K. Your recourse is simple if a Texas trustee has the legal obligation to notice junior lienors of their foreclosure auction. If so, and the oversight was the fault of the publisher of the trustee's sale guaranty or abstractor's certificate, then there might be a contract of indemnification that exists between the trustee and the publisher. You'd find out once you formally filed suit and sued the trustee. So, spend the time to research the obligation of a Texas trustee as far as notifying junior lienors of their impending foreclosure auction is concerned. Hope this helps. Follow Ups: Re: Texas trustee's notice obligation to junior lienors... Daniel Stephens 6:31 AM, 02/20/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Here's a good one for you Ward! BTW, you are great and you look JUST like my own foreclosure mentor here. I've got to send you a picture. : : Anyway, I purchased a home at a Texas Trustee's Sale a few months ago. The Trustee that conducted the sale missed a valid federal judgment that behaves just like an IRS tax lien, and therefore didn't notify the US Attorney's Office to trigger the redemption period(as they would the IRS). There were no excess proceeds. Later, I ended up having to pay an additional $26K to the government to clear the title and prevent the US Atty from foreclosing (executing) on me! : : Is there any recourse against the bank, trustee's firm, or title company that they subcontracted to do the faulty search? : : Any advice is greatly appreciated. : ================== : Daniel, : You may or may not have an action against the Trustee. It depends on whether or not a foreclosing trustee is obligated by Texas law to notify, besides IRS, all recorded junior lienors and interest holders of their impending foreclosure sale. : Here in CA the foreclosing trustee is obligated by law to give notice of the impending trustee's sale to all recorded junior lienors and interest holders. If they fail to do so, and as a consequence the overlooked lien remains on title after the foreclosure sale, then the trustee will have to do whatever it takes to remove that impediment or face a lawsuit over the issue. : In this instance you've cleared up the title to the tune of $26K. Your recourse is simple if a Texas trustee has the legal obligation to notice junior lienors of their foreclosure auction. If so, and the oversight was the fault of the publisher of the trustee's sale guaranty or abstractor's certificate, then there might be a contract of indemnification that exists between the trustee and the publisher. You'd find out once you formally filed suit and sued the trustee. : So, spend the time to research the obligation of a Texas trustee as far as notifying junior lienors of their impending foreclosure auction is concerned. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2004, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455