Home Buying in Orange City>Question Details

Tallen006, Home Buyer in Orange City, FL

I was scheduled to close on 10/23/09. A 2nd mortgage was discovered that did not get forclosed. How long should this take to close?

Asked by Tallen006, Orange City, FL Thu Oct 22, 2009

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There has been excellent advice posted here already, so I would reiterate that more information on your specific situation would be needed in order to give better info, but I will add a few general points. Sometimes if the second lien is small (under $5,000) then the first mortgage holder may elect to simply pay it off at closing rather then going to the time and expense of re-foreclosing on the property to remove the lien. Or if you are getting a good enough deal on the property you may decide to settle with the second lien holder yourself to get the deal closed. Depending on who holds the lien they may take a reduced payoff if they realize that they will get nothing if the first mortgage holder re-forecloses the property. It all comes down to time and money. I had a similar situation last week and a $2,000 second lien was discovered. The seller (the bank that foreclosed on the property) decided it was in their interest to just go ahead and pay the lien to get the deal done, maybe your deal will work out as easy as that too. Good luck!
0 votes Thank Flag Link Fri Oct 23, 2009
There are way too many variables to answer this question - I would need more information.

You should ask your Realtor, ask your title company, or ask your attorney. I have had similar cases including ones where the FIRST mortgage was not foreclosed on. It can take a few weeks, or a few months.

As a realtor I have learned to look for unsatisfied mortgages or mortgages where the mortgagee is not listed as co-defendant while in negotiations on REO, or even before an offer is made if it is a short sale. Often the listing agent doesn't even know how many mortgages are in place.

Good luck!

Phil Hanner
0 votes Thank Flag Link Thu Oct 22, 2009
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