The loan has been "lost"

This is unusual. I found a property, I found the 1st mortgage and who it got transfered to: Litton Loan. The second mortgage started with WMC Mortgage (no longer exists) was transfered, supposedly to Mountain Peak Financial (can’t find it - possibly defunct due to owner fraud). On top of that Mountain Peak has never sent the homeowners a bill since it was supposedly transfered to them several months ago. The home owners did receive a notice saying it was transfered.
Doing some digging myself, I did find a contact for WMC Mortgage. They told me that all their mortgages were transfered to Litton Loan. Huh. So, calling up Litton Loan again, they have no knowledge of this 2nd. They just one loan number for the property. Problem is, the WMC loan is still on record as belonging to the house. There are no other record/transfer changes recorded for the 2nd. The even bigger problem, since the 2nd has never sent a bill, none of us know where to find a loan number for payoff.
So, what to do about this property? specifically the 2nd. Its still on record, but it appears that the loan may have gotten lost somewhere or forgotten or something. How can we get this 2nd off of the property? Thanks.


You need to talk to the legal department at the Title Insurance Company that will be searching and insuring the title on the property. They will have experience with every kind of lost note. missing seller, etc.

You have got to have insurable title, so start there. If Litton Loan was the last one in the chain they may be willing to sign off on it. This is where your title insurance company should earn their fee.

Good Luck, Furnishedowner