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Company Loan Type APR Est. Pmt.

Investor foreclosed on a 2nd DOT

Posted on: 27th Nov, 2010 04:28 pm
ok, have an investor who had a 2nd dot on a property of mine that he foreclosed on because i was unable to make a balloon payment - no one showed up at the sale and he bid 5k (not sure why he bid 5k at the sale he forced but that's another question)

so investor takes deed to the property and actually takes me to court to "evict" me, which he is successful at

Subsequently, I don't own the property or live there any longer - however the bank is saying that I have to keep making payments to them on the 1st...the bank has a 134k 1st dot, and said investor had a 24k 2nd.

I know when he foreclosed he took the property subject to any existing liens but the bank says I have a responsibility to the note, not the property. They also demanded that I pay the taxes/insurance on the property or stated they would foreclose on their 1st dot if I did not. If it was not for the negative credit reporting I'd tell them go to hell, that's the only leverage they have.

So my question is, is the investor who foreclosed on the property required to make the payments on the 1st dot for 134k that the bank has?? To me it would seem yes because he foreclosed on the property subject to any liens/encumbrances, however like I said the bank claims if I don't con't to make payments/taxes/insurance they will foreclose on their 1st thereby ruining my otherwise stellar credit.

What do you guys think?? thanks for the help
Hi srfcocoa,

Though your property was foreclosed, you will be liable for paying off the deficient balance resulting from the sale of the property. If you do not pay off the dues, then the lender will be able to place a lien on any of your other properties in order to recover the dues.
Posted on: 28th Nov, 2010 09:22 pm
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