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groze

How do you verify to see if the Mortgage lien is valid?

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Note this is a friend of ours.

 

How do you verify to see if the Mortgage lien is valid?

 

Me & My friend came across something strange. The mortgage lien on the county records shows a bank that does not exist any more. However, it was taken over by U.S. bank but never updated the records at the county records office. I think during that time the bank was taken over is when she filed BK under the old law. The house is discharged. I am assuming if there is not a valid lien, they can’t take the house or foreclose on it if she stops paying and can keep the house. A title search wouldn’t do any good because they use the country records.

I talked to U.S. bank but they can't release info but did say they update county records when they take over banks.

Edited by groze

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Be careful.

 

Banks and lawyers go hand in hand.

 

Even if something wasn't done correctly,

 

they'll find a loophole to get the house anyway

 

if she stops paying.

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bankruptcy has nothing to do with a valid lien UNLESS it was a junior lien and stripped in a Chapter 13. A defunct mortgage lender on title doesn't make it free and clear either. If there is no reconveyance, they won't need a "Loophole" to enforce a lien. The question is, who is they? Title will do more than just search for county records. You pay darned good money for title work.

 

Better question is, let's say the lien is questionable. Is there a title company that will insure a new purchase? My bet is no.

 

I work with U.S. Bank and can say in my experience with them, there is no updating county records. I don't know why they would tell you that. It doesn't make any sense to "Update county records" unless...they are planning on foreclosing. THEN they will record an assignment from old owner to new owner. Updating county records to reflect new owners on hundreds of thousands of performing loans would not make any economical sense to do that and would be extremely inneficient.

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bankruptcy has nothing to do with a valid lien UNLESS it was a junior lien and stripped in a Chapter 13. A defunct mortgage lender on title doesn't make it free and clear either. If there is no reconveyance, they won't need a "Loophole" to enforce a lien. The question is, who is they? Title will do more than just search for county records. You pay darned good money for title work.

 

Better question is, let's say the lien is questionable. Is there a title company that will insure a new purchase? My bet is no.

 

I work with U.S. Bank and can say in my experience with them, there is no updating county records. I don't know why they would tell you that. It doesn't make any sense to "Update county records" unless...they are planning on foreclosing. THEN they will record an assignment from old owner to new owner. Updating county records to reflect new owners on hundreds of thousands of performing loans would not make any economical sense to do that and would be extremely inneficient.

 

I am not talking about what company does the mortgage payment. That he knows and that changes a lot. It is called loan servicing.

 

See, the title is in his name only. The lien holder on the title is a bank or credit union that no longer in existence. From our research U.S. Bank took over that bank. I went there to the U.S. Bank and a loan officer and asked him some general questions. I couldn't get full information because my friend wasn't with me. He did say that whenever they take over banks, U.S. bank updates all lien holder information at the county records. He also added, the bank usually don't have 3rd parties continue to do loan servicing-once they take them over.

 

My question, what if there is no valid lien or no valid lien holder and the house has been discharged under the old bankruptcy law and how to find out if there is a valid lien. He knows he could walk without any liability to his house but wants to keep it.

Edited by groze

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bankruptcy has nothing to do with a valid lien UNLESS it was a junior lien and stripped in a Chapter 13. A defunct mortgage lender on title doesn't make it free and clear either. If there is no reconveyance, they won't need a "Loophole" to enforce a lien. The question is, who is they? Title will do more than just search for county records. You pay darned good money for title work.

 

Better question is, let's say the lien is questionable. Is there a title company that will insure a new purchase? My bet is no.

 

I work with U.S. Bank and can say in my experience with them, there is no updating county records. I don't know why they would tell you that. It doesn't make any sense to "Update county records" unless...they are planning on foreclosing. THEN they will record an assignment from old owner to new owner. Updating county records to reflect new owners on hundreds of thousands of performing loans would not make any economical sense to do that and would be extremely inneficient.

 

I am not talking about what company does the mortgage payment. That he knows and that changes a lot. It is called loan servicing.

 

See, the title is in his name only. The lien holder on the title is a bank or credit union that no longer in existence. From our research U.S. Bank took over that bank. I went there to the U.S. Bank and a loan officer and asked him some general questions. I couldn't get full information because my friend wasn't with me. He did say that whenever they take over banks, U.S. bank updates all lien holder information at the county records. He also added, the bank usually don't have 3rd parties continue to do loan servicing-once they take them over.

 

My question, what if there is no valid lien or no valid lien holder and the house has been discharged under the old bankruptcy law and how to find out if there is a valid lien. He knows he could walk without any liability to his house but wants to keep it.

 

I'm not talking about what company does the mortgage payment either. Thank you for the clarification but, i'm confident I know what loan servicing is. Your first mistake was asking a loan officer this type of information. That's like asking a used car salesman what kind of oral surgery you should have. US Bank DOES have 3rd parties continue to service loans after they take ownership. I was a 3rd party subservicer and serviced US Bank loans. Also, they DON'T "update" all lienholder information at the county records.

 

We've taken over four banks in the four years I've been with my bank. under NO circumstances have we updated ANY ownership records to any recorder or clerks office except in the circumstances of foreclosure. In the 20 years i've been a lender/servicer, never have any of the entities i've worked for ever done anything that you are suggesting US Bank does.

 

Again, the bankruptcy has nothing to do with your scenario so, while I appreciate you again clarifying your "What if" scenario, there is no such scenario that could possibly exist other than the situation I mentioned (Chapter 13 lien strip on a junior lien). THE BANKRUPTCY AND DISCHARGE MEAN NOTHING IN YOUR SCENARIO!!!!!

 

To find out if there are any liens, order a prelim from a title company. Pay for it. Then you'll know. That should answer your question. If there is no lien, go to Vegas. If there is a lien, deal with it. If there is a question on whether the lien is valid or not, file a quiet title action against the suspect lien holder and spend thousands doing so, win, and then go to Vegas.

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To find out if there are any liens, order a prelim from a title company. Pay for it. Then you'll know. That should answer your question. If there is no lien, go to Vegas. If there is a lien, deal with it. If there is a question on whether the lien is valid or not, file a quiet title action against the suspect lien holder and spend thousands doing so, win, and then go to Vegas.

 

 

I just had my friend contact the Mortage Company they should know. If it is invaild they will find out real quick. He didn't ask if moratge lein is vaild at least not yet.

 

Edited by groze

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To find out if there are any liens, order a prelim from a title company. Pay for it. Then you'll know. That should answer your question. If there is no lien, go to Vegas. If there is a lien, deal with it. If there is a question on whether the lien is valid or not, file a quiet title action against the suspect lien holder and spend thousands doing so, win, and then go to Vegas.

 

 

I just had my friend contact the Mortage Company they should know. If it is invaild they will find out real quick. He didn't ask if moratge lein is vaild at least not yet.

 

 

Let us know how it goes!

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