Investent at risk

[Fossil Rock]

I sold my house a little over a year ago. I loaned the buyers $15,000 to help with the purchase and created a mortgage on the property to protect my investment. My mortgage is in 3rd place behind the primary lenders 1st and 2nd.

I just discovered that there has been a lis pendens filed and I was listed as a defendant in the case.

My understanding is that if the foreclosure goes through, most likely I will lose my investment. Is there anything I can do to either protect my investment or somehow slow down the foreclosure process?

It has been suggested that I file my own lis pendens. Would the foreclosure negate my lis pendens and thus void my claim?

It has also been suggested that I appoint the attorney for the Plaintiff as my fiduciary and then add them as a co-defendant in the case. From the explanation I was given this would prohibit them from representing the Plaintiff in the case.

I would like to see the buyer recover and do well, but now my investment is at stake and need to protect myself. $15,000 is a lot of milk and cookies for me.

[charlesa6]

Fossil Rock, welcome to the suijuris forum. If you file the lien on the mortgage or lis pendens you should be able to received the copy of summons to foreclosure send to the debtor for your answer as a third party intervenor to the foreclosure plus your claims to the property.

"would the foreclosure negate my lis pendens and thus void my claim, said Fossil"?

In respond to your question: The answer is no, unless you failed you didn't file proper document into the public record for the plaintiff attorney to discover during the search before they file the complaint.

Do you get the summons?

Do you answer the summons for your investment?

[Fossil Rock]

I properly filed the mortgage on the property. I did not receive any kind of notice or summons, I found out about it while searching the local public records. The purchaser did not notify me either.

I'm not sure what you mean by "failed". What did I fail at?

I don't know what I can do if anything. If I was not notified do I have any recourse?

I was thinking of following Sara Fugate's process, maybe enough to slow it down and let the purchaser catch everything up.

Funny thing is I have been politely pushing him and he pays me first. I need the money, as for the mortgage company I couldn't care less.

I've been reading a lot and learning a lot, but I really have no idea what steps I should take.

Thanks for replying

[charlesa6]

[quote=Fossil Rock]

I properly filed the mortgage on the property. I did not receive any kind of notice or summons, I found out about it while searching the local public records. The purchaser did not notify me either.

If you don't received any copy of the summons, then you don't have a lien on the property.

I'm not sure what you mean by "failed". What did I fail at?

You don't have the lien or lis pendens on the property. Mean you don't have a claim.

I don't know what I can do if anything. If I was not notified do I have any recourse?

You have to file the lien or mechanic lien on the property in other to have a valid claim.

I was thinking of following Sara Fugate's process, maybe enough to slow it down and let the purchaser catch everything up.

I don't know about that. You can slow down the process if you have the claim on the property with your name on the summons send to the defendant.

Thanks for replying

No problem.

[Fossil Rock]

I am listed on the lis pendens at one of the defendants, so I must have something in there. I need to understand this process better.

I know I have a lien, got the paperwork to prove it. What I don't have is a clear understanding of what my options are.

It's possible I didn't receive a copy of the summons because they were not able to locate me. All I have is a P.O. Box for mail. If it was sent and required a signature it probably got sent back after few days. I only check it once a month.

[charlesa6]

[quote=Fossil Rock]

I am listed on the lis pendens at one of the defendants, so I must have something in there. I need to understand this process better.

Good.

I know I have a lien, got the paperwork to prove it. What I don't have is a clear understanding of what my options are.

Your option is to go to the court house and check the record if your name is on the summons.

It's possible I didn't receive a copy of the summons because they were not able to locate me. All I have is a P.O. Box for mail. If it was sent and required a signature it probably got sent back after few days. I only check it once a month.

That's why you need to go there and check the record if you name listed before anything else.

[Fossil Rock]

On the lis pendens I'm listed second to the buyers. Is the lis pendens the same as a summons?

If it's not and I am listed on the summons, what would I do next?

BTW, Thanks for spending time with me.

[charlesa6]

[quote=Fossil Rock]

On the lis pendens I'm listed second to the buyers. Is the lis pendens the same as a summons?

The answer is No.

If it's not and I am listed on the summons, what would I do next?

You have to answer the summons: Admit/Deny and the demand that all pleadings the plaintiff file must be purge out because of the technical error and defendant should answer your complaint instanter before anything else. You have to use the code of where you live in relatively to technical error and instanter to back it up. You need to study the civil procedure in your state and familiar yourself with foreclosure procedure. If you don't know, don't do it, get a lawyer.

BTW, Thanks for spending time with me.

No problem.

[Notorial dissent]

Fossil Rock
I guess my first question is how did you end up in third place on this in the first place, at the very least, you should have been second. The fact that there is a second ahead of you is worrisome.

Second question, is what is the relative value of the property as opposed to the notes out on it?

The lis pendens is a notification of impending legal action, in this case foreclosure, that being the case, there should be documents on file at the local court, and I would go there and get copies ASAP.

If it goes to foreclosure, the two notes ahead of yours are going to prevail, the first getting coverage of their note, and then the second hopefully getting their bite, with you last. The problem being that if there are no bids, the first holder will bid in enough to get the property and the remaining two will be left hanging.

Depending on how your mortgage is written, I would suspect you will have to file against him as well in order to even get priority. Lis pendens is ONLY a notice, and is legally meaningless as far as the foreclosure is concerned.

Appointing the attorney fiduciary is useless to begin with, legally meaningless, and could actually be illegal. In any event, they cannot act for you and their client since your interests are appositional.

Why is the buyer in the condition he is?

I’m not sure why you didn’t receive notice of the suit, but it may be that since you are not bringing it, and are not actually a party to the suit they didn’t notify you to keep you from filing as a lien holder. Not knowing the foreclosure statutes of your state I can only guess.

Do check the documents at the courthouse and do it as quick as possible.

[Fossil Rock]

Originally Posted by Notorial dissent

Fossil Rock
I guess my first question is how did you end up in third place on this in the first place, at the very least, you should have been second. The fact that there is a second ahead of you is worrisome.

The buyers got an 80/20 or 90/10 financing which is 100% financing. Each side of the / is a separate mortgage thus 1st/2nd. Mine was drawn up at the same time and was immediately the 3rd.

Originally Posted by Notorial dissent

Second question, is what is the relative value of the property as opposed to the notes out on it?

I would have to say that the value to loan ratio is equal or less. The real-estate market is going down and since they got 100% financing, the property is probably worth less than the note.

Originally Posted by Notorial dissent

The lis pendens is a notification of impending legal action, in this case foreclosure, that being the case, there should be documents on file at the local court, and I would go there and get copies ASAP.

I already have a copy of the lis pendens, but there are no other documents in the public records.

Originally Posted by Notorial dissent

If it goes to foreclosure, the two notes ahead of yours are going to prevail, the first getting coverage of their note, and then the second hopefully getting their bite, with you last. The problem being that if there are no bids, the first holder will bid in enough to get the property and the remaining two will be left hanging.

Understood, thus my reason for posting here.

Originally Posted by Notorial dissent

Depending on how your mortgage is written, I would suspect you will have to file against him as well in order to even get priority. Lis pendens is ONLY a notice, and is legally meaningless as far as the foreclosure is concerned.

Ok, I could file, but I'm not sure of the costs involved especially if I need to get an attorney involved. It may end up costing more than I'm owed, it then becomes a lose-lose situation for me.

Originally Posted by Notorial dissent

Appointing the attorney fiduciary is useless to begin with, legally meaningless, and could actually be illegal. In any event, they cannot act for you and their client since your interests are appositional.

This was just a tactic I read online, wasn't sure how it worked or if it did at all.

Originally Posted by Notorial dissent

Why is the buyer in the condition he is?

Honestly, I believe it's because our borders have been opened up (or at least not sufficiently closed) to illegal immigration and his industry has taken a hard hit because of it. I speak to him at least twice a month and am concerned for him and his family.

Originally Posted by Notorial dissent

I’m not sure why you didn’t receive notice of the suit, but it may be that since you are not bringing it, and are not actually a party to the suit they didn’t notify you to keep you from filing as a lien holder. Not knowing the foreclosure statutes of your state I can only guess.

Would a summons be filed in the public records or do I have to hunt for it somehow?

Originally Posted by Notorial dissent

Do check the documents at the courthouse and do it as quick as possible.

I will be Monday as soon as the office opens.

Another thing I've read is that I can file a UCC-1 with my investment listed. I don't know anything about UCC-1 yet, but my understanding is they would definitely have to pay that off ... right or wrong .. ??