Home Buying in Memphis>Question Details

Michelem, Home Owner in Memphis, TN

What are 1st lien holder rights when a bank refinanced without clearing the Lien?

Asked by Michelem, Memphis, TN Mon May 2, 2011

1st Bank refinanced without clearing my liens from the divorce. They are now foreclosing on all of ex- spouse's property. Both parties seem to want me to roll over and die. Ex wants to surrender all property and owe no one anything having not paid any of property settlement to me and with out declaring bankruptcy. They want a short sale and have a buyer lined up.

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6
Dp2’s answer
Something doesn't sound right. A lender couldn't do a refinance without creating a new note and mortgage, and that new mortgage would not be in first position if the other liens weren't properly cleared before that transaction closed. Yet, a lender could have done a loan modification without affecting the other liens.

You definitely need to consult with a real-estate attorney (especially one who has experience doing forensic loan audits).
0 votes Thank Flag Link Wed May 18, 2011
Michele,

I know it's been sometime since your question date, but if you need some names, please let me know!
It's better to consult an attorney.

Regards,
0 votes Thank Flag Link Tue May 17, 2011
To many more questions require answers best have your listing agent resolve all these concerns

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0 votes Thank Flag Link Mon May 2, 2011
Your situation is complex. No on-line advice is going to be the solution for your problem. The only exception is the advice to seek legal help. I would start with the attorney who resented you in the divorce. Good luck. If you ex-husband has no assets you may be out of luck.
0 votes Thank Flag Link Mon May 2, 2011
Hi Michele,

You absolutely need to contact an attorney, preferably the closing attorney that handled your refinance. This is a complicated legal situation and you should seek the advice of a professional. Usually, the closing attorney will help you with little or no extra fees, but that all depends on the situation, the attorney and how much is involved.
This may also need to involve your divorce attorney, but the closing attorney can point you in the right direction.

Good Luck!
0 votes Thank Flag Link Mon May 2, 2011
you really need to talk with a good real estate attorney who has experience with these things. Any Memphis agents out there who can refer Michelem to a good attorney?
0 votes Thank Flag Link Mon May 2, 2011
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