Bank approved at $100,000 less than comps, BUT

This house comps at $209K, I just got an email approving at $103K but, we can’t find the second mortgage. :banghead :banghead :banghead The homeowners doesn’t have their original paperwork and they never received a bill nor pay stub from the transfer of the 2nd about 5-6 months ago. :banghead We have the loan number of where the 2nd was, just not where it went to. So, how am I going to find the 2nd?


Is there a lien recorded against the property? That might provide some information. You also have the option to quiet title.

There are no liens.
Quite title? Please explain this concept. It sounds like something that may work well. Thanks.


Talk with the title company you are dealing with. They probably see this on a semi-regular basis and will have some suggestions of how to proceed. There IS a paper trail, you just haven’t found it yet.

Quiet title, in my limited experience, takes a long time and mostly benefits the lawyers involved.


How can there be no liens with a mortgaged property? If there is no lien, then the lender has no claim against the property and you could ignore it. The 2nd must be recorded.

You will need an action to quiet title if you can’t find the 2nd lender. You won’t be able to provide a clean title to your buyer until the mortgage lien is removed.

Sorry, I guess I misunderstood the terminology. I was thinking along the lines of mechanics or HOA liens. My county specifically identifies those as a seperate category from the mortgages.
Yes, there are two mortgages recorded on title, however, none of the mortgage transfers are recorded.
I spoke with a lawyer that specifically deals with quiet title issues. He said the work can be done for about $1500 and take 6-8 weeks. Is this a reasonable cost? The lender requires that I close by Friday, August 28th - that’s 5 business days from today.


That price doesn’t seem unreasonable, but I don’t know your area. Attorneys in my area would want a $3K retainer with additional work billed at $200-300/hr.

I just offered action to quiet title as a possibility. Given your time line, I don’t see how it’s possible. Maybe a private investigator can use the information in the recorded mortgage to find the 2nd lender in such a short time.