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Is it legal...?
- Thread starter tweed
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seniorjudge
Guest
"Is it legal for three different mortgage companies to simultaneously possess (noteholders) deeds of trust against the same house?"
Yes.
The mortgages are ranked according to the order of recording: the oldest is the senior, the next the middle, and the third the junior.
If, for example, the first is foreclosed, the other two will be wiped out.
If, for example, the third is foreclosed, the other two will still be liens.
Yes.
The mortgages are ranked according to the order of recording: the oldest is the senior, the next the middle, and the third the junior.
If, for example, the first is foreclosed, the other two will be wiped out.
If, for example, the third is foreclosed, the other two will still be liens.
What is NOT legal is an owner failing to disclose knowledge of any prior mortgages that they have executed when they close on additional mortgages. In other words, the mortgage companies are allowed to have junior mortgage,. but an owner must disclose if, for example, they have recently closed on a mortgage that may go of record in front of their mortgage. That is because they are underwriting their "risk", and therefore their interest rate, based upon what priority their mortgage will have.
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seniorjudge
Guest
nextwife said:What is NOT legal is an owner failing to disclose knowledge of any prior mortgages that they have executed when they close on additional mortgages. In other words, the mortgage companies are allowed to have junior mortgage,. but an owner must disclose if, for example, they have recently closed on a mortgage that may go of record in front of their mortgage. That is because they are underwriting their "risk", and therefore their interest rate, based upon what priority their mortgage will have.
You are correct...that's why we have title companies.
seniorjudge said:You are correct...that's why we have title companies.
In counties like mine, the "recording gap" can easily run 6 weeks from the date a document is recieved at the RODs office until the date it can be picked up as "posted into the record" by a search done by the title company. I merely pointed this out because I have discovered that some people think if it does not show on the title search, they, the owner, have no responsibility to point out they closed on another mortgage a week ago, one that the title company's search would not disclose. One that does not show up on the commitment the title company has issued on behalf of the mortgage lender.
The question just raised a red flag as to what the purpose of asking might be.
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seniorjudge
Guest
nextwife said:In counties like mine, the "recording gap" can easily run 6 weeks from the date a document is recieved at the RODs office until the date it can be picked up as "posted into the record" by a search done by the title company. ...
Man, they are skyrockets! That's why you have to pay attention to the effective date of a title commitment/binder.
Yeah, I agree on the red flag.
tweed said:What is the name of your state? Virginia
Is it legal for three different mortgage companies to simultaneously possess (noteholders) deeds of trust against the same house?
**A; so why are you asking?