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Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102145
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I have a second mortgage from a company that has filed

Customer Question

Hello, I have a second mortgage from a company that has filed bankruptcy, and now is out of business. How do I get them removed as the 2nd mortgage company? My house is in foreclosure and pending a short sale
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  Ely replied 10 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. Understand that even though they may be out of business, their loans may have been bought up by another company.

If you feel that the second mortgage may be removed because (1) they company has ceased to exist, or, (2) whatever the company that bought up all the loans is, they will not care to challenge this, then, what someone in your situation wants to do is to file a QUIET TITLE action in Court. A quiet title action is a lawsuit that asks the Court to rule on property, with matters such as contested ownership, easements, deeds, liens, etc. If for some reason the company does not reply (even if they are out of business, there are still ways to serve it, and if their loans were bought up by another company, that other company must be served), then the Court may provide a default judgment in your favor and remove the lien.

The bad news is that this may take a few weeks to push through assuming a default judgment would be received. IF the other company relies, then this would take months to get to trial, and you may lose if the loan is valid.

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I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  Ely replied 10 months ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!

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