Find 2nd mortgage lien and offer settlement

[MNC4800]

What is the name of your state (only U.S. law)? Illinois

My ex and I took out a $25k 2nd mortgage in 1996. In 1999 he lost his job and we filed chapter 7. In 2000 we divorced and I stayed in the house. I reaffirmed the 1st but not the 2nd. Ex was supposed to pay 1/2 of the second but never did. I was able to make a few payment at first but was unable to keep up without his help. 2nd has not been paid since 2000. I'm not sure if these details matter, but ex signed quit claim deed in 2010 and first mortgage is still in both our names as I have not been able to refinance in my name alone due to my income.

I'm interest in offering a settlement on the 2nd mortgage so I went to my county recorder to look up the lien. There was no such lien on the property. I know this can't be true....so how do I find the lien so I know what amount the lien is and with who (in case they sold it to another lender)

Also....any advice on how to approach settlement? Today the house has no equity due to so many needed repairs as well as improvements my ex did without building permits that need to be redone to code. If I can settle on the 2nd I may be able to start tackling the repairs bit by bit. If 2nd refuses to settle I think it may make more sense to just let the house go.

 

[LdiJ]

What is the name of your state (only U.S. law)? Illinois

My ex and I took out a $25k 2nd mortgage in 1996. In 1999 he lost his job and we filed chapter 7. In 2000 we divorced and I stayed in the house. I reaffirmed the 1st but not the 2nd. Ex was supposed to pay 1/2 of the second but never did. I was able to make a few payment at first but was unable to keep up without his help. 2nd has not been paid since 2000. I'm not sure if these details matter, but ex signed quit claim deed in 2010 and first mortgage is still in both our names as I have not been able to refinance in my name alone due to my income.

I'm interest in offering a settlement on the 2nd mortgage so I went to my county recorder to look up the lien. There was no such lien on the property. I know this can't be true....so how do I find the lien so I know what amount the lien is and with who (in case they sold it to another lender)

Also....any advice on how to approach settlement? Today the house has no equity due to so many needed repairs as well as improvements my ex did without building permits that need to be redone to code. If I can settle on the 2nd I may be able to start tackling the repairs bit by bit. If 2nd refuses to settle I think it may make more sense to just let the house go.

Actually, yes it can be true. If no lien was ever recorded against the property, and the two of you filed chapter 7 bankruptcy without reaffirming the 2nd, then its a done deal. They would have had to have perfected a lien before the bankruptcy was filed.

 

[adjusterjack]

I went to my county recorder to look up the lien. There was no such lien on the property. I know this can't be true....so how do I find the lien so I know what amount the lien is and with who (in case they sold it to another lender)

Searching recorded documents can be complicated.

I suggest you engage a title company to do a proper search of all recorded documents from the time you bought the house to the present.

They have experts who know how to turn up everything that could show your the original lien and any subsequent substitution of parties.

Call around for prices for the service. If it costs you a few hundred that's better than being sandbagged with it later on at the most inconvenient time.