Sell Home with old 2nd

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JohnFL

LoanSafe Member
Aug 21, 2010
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0
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So bought home in 2005, with both 1st and 2nd with New Century. Fast forward 2008, out of job, 1st starts foreclosure. 2nd was serviced by Select Portfolio Servicing for Deutsche bank I believe. Was able to modify 1st with Ocwen, believe Deutsche bought 1st for modification. I never heard anything from SPS or Deutsche in regards to 2nd mortgage. Fast forward to today. Would like to sell home, however have several problems. The 2nd shows New Century with lien on property. How do I go about selling the home and settling the 2nd in the process? I suspect that Deutsche owns both 1st and 2nd, but no one has ever contacted me about 2nd. Since it still shows New Century as lien holder on 2nd, can I do a quiet title action and then get title insurance for new owner? If not, how do I find owner of 2nd lien? I paid to have title search done, but they only found New Century. It Is not listed in MERS anywhere, only on county site. I have thought about hiring a RE lawyer with the Title company I would use to sell house. Would this be a good idea? The balance was around 72k in 2008, but would like to settle for less if possible. Thank you guys for all the support you provide here, this place helped keep my sanity back in 08, 09 period.
 

OneHugeMess

LoanSafe Member
May 30, 2016
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If you purchased the home, and the loans were both funded by New Century at the same time, there's about a 90% chance, your first & second mortgages are apart of the same loan trust for which Deutsche Bank acts as the trustee. Deutsche Bank is not the owner, but just a "trustee" company, almost acting as an attorney for the faceless, nameless investors (plural). The servicing company may be the same company, as the one that services your first mortgage.

In your particular case, what I would do is begin calling Ocwen than Select Portfolio Servicing, and even Specialized Loan Servicing, and see if they can find this outstanding loan by your social security number. They are going to ask you repeatedly why your calling, and you should just say, you have a 2nd Mortgage that you haven't paid since (2008) and you are looking to figure out what happened to it.

There's also a chance that a loan number is on the security instrument (the mortgage recording in public records)... this in a lot of cases, will find a loan that has been charged off/lost faster than an SSN Search.

If none of them can find it, I would make one last call to Realtime Resolutions. They briefly serviced the 2nd Mortgage I obtained from Countrywide and stopped paying in 2008. They seem to pickup a lot of these second liens, at one point or another.

? I suspect that Deutsche owns both 1st and 2nd, but no one has ever contacted me about 2nd. Since it still shows New Century as lien holder on 2nd, can I do a quiet title action and then get title insurance for new owner? If not, how do I find owner of 2nd lien? I paid to have title search done, but they only found New Century. It Is not listed in MERS anywhere, only on county site. I have thought about hiring a RE lawyer with the Title company I would use to sell house. Would this be a good idea? The balance was around 72k in 2008, but would like to settle for less if possible. Thank you guys for all the support you provide here, this place helped keep my sanity back in 08, 09 period.

I would find out who services the first Mortgage First.

Afterward, you can begin to decide rather you want to settle, payoff, or wait it out.

Do you remember if your 2nd Mortgage was a 15yr Fixed? If it was, there's a chance the lien may have expired.
 
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JohnFL

LoanSafe Member
Aug 21, 2010
13
0
1
Thanks for the reply. Unfortunately, the 2nd was not a 15yr fixed.So I know who the first is, it's PHH, who was Ocwen. When I did modification in 2010 it looks like Deutsche was given my New Century 1st mortgage which is a Morgan Stanley Pass thru Certificate serviced by Ocwen. The first is current. The second still shows New Century who I am trying to find out how has ownership or servicing. I'll try Ocwen and SPS. Now, question is if I find them my 2nd was for 72k. I would like to pay less than 72k, but if push comes to shove I'll pay the 72k. Question ? Are they allowed to charge interest if they have not tried to collect in over 10 years?
 

Jzone

LoanSafe Member
Jun 20, 2017
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Thanks for the reply. Unfortunately, the 2nd was not a 15yr fixed.So I know who the first is, it's PHH, who was Ocwen. When I did modification in 2010 it looks like Deutsche was given my New Century 1st mortgage which is a Morgan Stanley Pass thru Certificate serviced by Ocwen. The first is current. The second still shows New Century who I am trying to find out how has ownership or servicing. I'll try Ocwen and SPS. Now, question is if I find them my 2nd was for 72k. I would like to pay less than 72k, but if push comes to shove I'll pay the 72k. Question ? Are they allowed to charge interest if they have not tried to collect in over 10 years?
A real estate attorney will probably be worth it in your case. When you sell, the new owners bank/finance will not close the deal without a clean title. If you/attorney can not determine who holds the lien, a quiet title action may work for you. In Michigan, that takes about 6 months to complete and a judge makes the determination and issues paperwork with the county clerk for a clean title. A quiet title action sends out notice to all possible claimants to the case. They bring documents to state their rights to the property and you bring yours. If no one else shows up, its pretty straight forward. However, its pretty likely someone will show up and ultimetely the judge will decide.