Commercial and Residential Foreclosures

Highlight of services offered:

  • Judicial and Non-judicial foreclosures
  • Compliance with Fannie Mae, Freddie Mac, HUD and VA standards
  • Stringent document retention and document verification procedures
  • Timely escalation of non-routine matters
  • Compliance with Servicemembers Civil Relief Act
  • Timeline management and robust reporting
  • Expedited transition to loss mitigation solutions if warranted

Holder of Note May Enforce Deed of Trust
Definition of negotiable instrument includes promissory note.  Promissory note and deed of trust securing it may be separate documents, but deed of trust can never transfer without promissory note.  Transfer of note is inferred in transfer of deed of trust.  Holder of note may enforce note, and deed of trust securing it, even if holder is not owner of either note or deed.  Chain of succession’s integrity remained genuinely in dispute, so summary judgment for either party must be denied and all related claims are remanded to circuit court.
Federal National Mortgage Association and Nationstar Mortgage, LLC vs. Jeffrey A. Conover, et al
Missouri Court of Appeals, Western District – WD76276 and WD76347

Beware of the second mortgage on residential loans.   Example:   The first mortgage has a balance of $300,000.  The second mortgage has a balance of $75,000.  Let’s assume that the value of your house is now only $235,000.  Since the value of the house is less than the balance of the first mortgage, there is no equity in the house securing or holding the second mortgage.  A lawsuit within the Bankruptcy Court will be filed to declare the second mortgage unsecured.  If successful, a person filing bankruptcy can exit a completed Chapter 13 without the second mortgage attached to their home.  Depending on the payout of the Chapter 13, that entire mortgage could be discharged and if so, the second mortgage will no longer be attached to the property and  there will be NO FORECLOSURE.

Leases:  it is settled law that a lease is automatically extinguished by foreclosure unless it predates the lien of the foreclosed deed of trust. City Bank and Trust Co. of Moberly v. Thomas, 735 S.W.2d 121, 122 (Mo. App. E.D. 1987).