Bank Forclosing against wrong person

I had been planning to bid on a upcoming forclosure. However, after receiving the title search by a local title company, the mortgage company seems to be forclosing on the ex-wife of the owner, not the owner. The mortgage and deed are in the ex-husband’s name as “a single man” but the forclosure action is against the ex-wife.

A review of the title report indicates the property was purchased by the ex-husband after the divorce. There was already a forclosure action in his name last year but the property was redeemed by someone. It did nto show up on the title search.

Any ideas about what the mortgage company is actually up to or the risks of buying this property as sheriff sale.

The property is pledged as collateral for a loan probably taken out by the ex-wife. Even though the property may have been deeded to the former husband, the loan is still in the ex-wife’s name. The ex-wife is still liable to the lender for repayment of the loan balance.

I am guessing that the ex-husband did not refinance the original loan. Instead, he took out a second mortgage to purchase the ex-wife’s equity, leaving the first mortgage in place and is now defaulting on the “wife’s” loan.

Therefore, the lender’s foreclosure action names the person liable for the loan – the ex-wife.

Just my guess on what is happening here, though I am only making assumptions that would fit the scenario – assumptions that do not allow for a gross error on the part of the settlement attorney who deeded the property to the husband and recorded the mortgage.

Of course, it is possible that the settlement attorney embezzled the settlement funds and never paid off the original lender. This set of circumstances will still fit the scenario you describe.

The mystery is solved. It appears the original forclosure was in the husban’ds name only and vas vacated since the wife was never notified. This forclosure is an amendment to the original forclosure. The husband is still named in the actual suit.

I bought the property at about $40K below market at the sale, it needs about $10K of work.