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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Clearing up the wonderment of lien superiority. Posted by Ward-CA- on November 25, 2001 at 9:48 PM In Reply to: Confused in Kansas posted by Les on November 25, 2001 at 6:45 AM : Ward, why do you make such a big deal about searching the title youself before you buy at the auction? In Kansas, the forclosuing attorney generally have the title search work done prior to the actual auction. If they are willing to buy the property back for the banks or mortage compamies at the auction, would it not be a safe bet that the property is clear of liens? What do you know that I should know? =•=•=•=•=•=•=•=•=•=•=•= Les, a lender who is foreclosing against their lien, knows its priority is either the same as when they originally recorded their lien, or possibly higher. Their lien could have become higher in priority, in between when it was recorded and now, if some other lien senior to theirs, was paid off during the same time period. However, I’m not privy to the foreclosing lienholder’s original title work. So I currently have to determine the relative priority of their foreclosing lien for myself. It’s crucial that I know if it’s first or second, etc. And since I’m looking at so many foreclosure deals in a month, I can’t afford to pay some title company to do my title research for me. In the 20 years I’ve been buying foreclosures, I have never been wrong about the priority of the foreclosing lien. That’s a very comfortable feeling when I’m bidding thousands and thousands of dollars at an unforgiving, non-reversible, trustee’s sale. Hope this clears up why it’s a big deal for me to check the title record so carefully. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, why do you make such a big deal about searching the title youself before you buy at the auction? In Kansas, the forclosuing attorney generally have the title search work done prior to the actual auction. If they are willing to buy the property back for the banks or mortage compamies at the auction, would it not be a safe bet that the property is clear of liens? What do you know that I should know? : =•=•=•=•=•=•=•=•=•=•=•= : Les, a lender who is foreclosing against their lien, knows its priority is either the same as when they originally recorded their lien, or possibly higher. Their lien could have become higher in priority, in between when it was recorded and now, if some other lien senior to theirs, was paid off during the same time period. : However, I’m not privy to the foreclosing lienholder’s original title work. So I currently have to determine the relative priority of their foreclosing lien for myself. It’s crucial that I know if it’s first or second, etc. And since I’m looking at so many foreclosure deals in a month, I can’t afford to pay some title company to do my title research for me. : In the 20 years I’ve been buying foreclosures, I have never been wrong about the priority of the foreclosing lien. That’s a very comfortable feeling when I’m bidding thousands and thousands of dollars at an unforgiving, non-reversible, trustee’s sale. : Hope this clears up why it’s a big deal for me to check the title record so carefully. 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

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