Mortgages and proper filing of them

[Catia]

I read a booklet that is linked to from this site.
It specifically stated that if a mortgage is not exactly properly filed, that a trustee will take the property no matter what.
How do you make sure, before you file, that your mortgage was properly filed? In that doc it stated that even if the bank made the mistake, it does not matter, the trustee takes the home--so, if there were a mistake in proper filing--how would you get it corrected BEFORE--can it be corrected? Seems unfair that if the bank filed 1 day past their criteria that your home cannot be used as an exemption, but so far, this is what I am reading.

[Minnymouth]

BELIEVE ME, READ MY LIPS AND MARK MY WORDS - YES, THEY CAN TAKE YOUR HOME......if the paperwork is not recorded properly........

THEY TOOK MINE....(talk about being shocked).....

I had owned my home for 7 years, filed bankruptcy (was to reaffirm on the mortgage).....THEN found out the mortgage papers were not recorded correctly. THUS THE TRUSTEE stepped in and seized my property/home and sold it on the auction block.....

NOTHING I COULD DO ABOUT IT...... ALL LEGAL AND PROPER..... and couldn't STOP it from happening.

Doesn't make any difference WHO DID IT, or who got "wronged" in the process....... IT WAS SEIZED AND SOLD...

Same thing will happen with an auto if its not recorded properly...

SOOOOOOO, check those mortgages, titles, etc..... Make sure they are recorded properly at the court house and within the given time frame they were supposed to be recorded. Make sure ALL INFORMATION is on the paperwork, that its correct, and that none is missing.

If not................YOU WILL PAY THE PRICE OF LOOSING YOUR HOME OR AUTO...... whether you did anything or not!!

TAKE IT FROM SOMEONE WHO KNOWS..........IT HAPPENED TO ME!!

[Lindsay]

This is extremely scary! How can you find out if the mortgage is properly filed before you file?

Minnie, that is a horrendous story. I'm so sorry that happened to you. When this happens, does the mortgage company get any money from the sale or are they out of luck too for not putting the lein on properly? I didn't even realize this could happen and our lawyer didn't mention it. He did ask for a copy of the deed to our home, would the lein be listed on this? We haven't went down to pick it up yet.

[Catia]

((((((((((Minnie))))))))))))--I am truly sorry for your loss, I cannot imagine how much that must've enraged you to lose your home to the trustee all due to the bank's negligence.
Yes, I have read that this happens, which is why I am here to ask about just this. People really need to know that they can and will lose their home if their mortgage is filed just 1 day late--and there are different time stipulations for different types or mortgages. This is info you must know.
I am one of those paranoid people (read: hyperaware)--I refuse to even go to an attorney and consult until I am SURE every document I have is in exact peoper order, with several copies made, and nothing left to chance that is within my control at this point.
Having a potential BK and/or foreclosure is bad enough, and very disempowering, so you must know your affairs are in order, and if they are NOT, you must know how you can change/fix/remedy the problem before anything is property of the trustee. There is no turning back at that point.
So my question is, how are you able to determine IF your mortgage was properly recorded, and if by chance you find there is some error in the recording--what steps can you take to remedy the situation BEFORE you go into BK???
I suppose if you do not want the house in the 1st place, it is of no issue to you--BUT--if you are planning to use your homestead exemption to keep your house, this is by far the most important bit of info--you will NOT be allowed to exempt your home if your mortgage was not properly recorded, the trustee WILL take it, and your intended homestead exemption is rendered unusable, read: you will lose not only your physical home, but any equity you had in it.
So can anyone answer this question???

[Minnymouth]

Okay.............Get a copy of your mortgage and titles of mobile homes/autos and go over them carefully......

Things to look for:
1. Recorded/stamped date at the Court house and what deed book it is filed in.....
2. Make sure land and home BOTH are listed on the deed and a description of both.
3. Make sure the date recorded is within the time frame that your state delegates that it be recorded (usually 10 days to 30 days)....
4. If your home is a MOBILE HOME AND/OR DOUBLEWIDE make sure that you have a separate title for the mobile home and that it has been transferred to you properly and recorded at the court house. This title looks just like a car title and is treated the same...
5. If your mobile home has been converted and the title dissolved then your deed should say "land and mobile home" with a description of such on the deed.
6. If there is a lien against just the mobile home (not the land) then it should be listed on the title to the mobile home.
7. The deed at the courthouse should show ANY liens that exist.... IF YOU DON'T FIND ANYTHING RECORDED THERE...... start hunting...... because someone did not follow thru on their paperwork and recording of documents..... and it could be YOUR LOSS.....
8. Make SURE everything has been transferred to you and your name is on the documents, not the previous owners.
9. Make LIENS are listed on the documents......

Many homes/autos are seized due to incomplete paperwork by title companies, mortgage companies, auto dealers. They are slack in recording documents, and often do not transfer to the new owners before recording...... AND ALL THIS IS AT YOUR EXPENSE.....

If not recorded properly it can legally be yours with NO LIENS against it, making it a free and clear asset for the Trustee to seize and sell.

Your attorney needs to doublecheck all the titles and mortgages you give him (MAKE SURE HE DOES), and you check them also....

MINE DIDN'T CHECK ANYTHING...... AND I LOST MY HOME BECAUSE OF BAD PAPERWORK BY THE TITLE COMPANY AND MORTGAGE COMPANY......... (paperwork that had been drawn up in 1997 and not discovered until 2004 when I filed bankruptcy.) The Trustee found the bad paperwork right before the 341 meeting.

Nothing could be done, I couldn't stop the bankruptcy, the Trustee would not show me ANY MERCY WHATSOEVER, and he smiled, seized my home, and sold it on the auction block to pay his creditors. They would in NO WAY correct the paperwork thru the court so I could keep my home...... even though I knew nothing about the errors they had made 7 years before....

And yes, the Mortgage Company was NOT OUT A DIME..... when the property was seized and sold. They still had a mortgage against the land, which they seized and sold, and they as a creditor got the largest percentage of the proceeds from the sale of the home/land.

The mortgage company ended up getting almost EVERY DIME OWED TO THEM, PLUS 7 years of payments and interest off of me..... SO THEY CAME OUT SMELLING LIKE A ROSE..... at my expense!!!

I lost my complete investment......(thru no actions or fault of my own).... my downpayment $17,000 plus 7 years of payments and interest, house insurance, $20,000 worth of improvements, etc...

I was told "SORRY ABOUT YOUR LUCK"...... by my attorney!!!

This told me that HE NEVER EVEN LOOKED AT DOCUMENTS, just filed the petition and went on...... and when the problem came up, HE COVERED HIS OWN a**, KEPT ME IN THE DARK, AND SET ME UP FOR THE KILL!!!!
He said he "did nothing wrong".....

Needless to say, he did not represent me in my best interest!!!
He just covered his own A** when they discovered the bad title and paperwork....... causing me to loose my home.

So........ look at your paperwork, ask questions about it, make sure the attorney looks at it with you......

Under the new laws, the attorney can be held liable for signing off on your petition that it "is correct", and that all information "is correct".....

I paid for the expertise and knowledge of a bankruptcy attorney and got 'SCREWED" in the end.

Everybody got paid, but me.............. I took the loss!!!

So careful folks, pick your attorney carefully, and look at those legal documents (deeds, titles, etc) really close to make sure that they are all correct and recorded properly....

BELIEVE ME, IT COULD HAPPEN TO YOU!!!

[Minnymouth]

Yes, you loose your entire investment..... downpayment, equity, improvements, payments and interest you've paid over the years, etc.....

And the sad part is yes you can correct the problem BEFORE FILING, but you would have to wait a year or so before filing your bankruptcy..... as the Trustee can GO BACK and undo anything that you do in previous years (up to 5) before filing.

So even if I had corrected the problem, then filed, the Trustee could still "undo the corrections" and seize and sell!!

What really "pissed me off" was when we discovered the problem, we couldn't get the bankruptcy dismissed for ANY REASON........ the Trustee saw $$$$$$ and run with it......

SOOOOOOO, really check that paperwork folks, IT'S IMPORTANT!!