2nd mortgage question about 1st mortgage

[sikander]

Hello,

I own a second mortgage on a residential property.

Is it possible for me to get a current Mortgage Statement for the 1st mortgage ? I`ve been told I can request a "verification statement" of the 1st mortgage from the 1st mortgage holder. Do I need a lawyer to do this or can I request one myself ?

I tried talking to the bank`s branch and then to the mortgage department on the phone but they`ve told me that due to privacy laws, I am not entitled to any information about the 1st mortgage.

Thanks for any help.

 

[TIMWEMBLEY]

QUOTE (sikander @ Mar 23 2009, 03:40 PM) Hello,

I own a second mortgage on a residential property.

Is it possible for me to get a current Mortgage Statement for the 1st mortgage ? I`ve been told I can request a "verification statement" of the 1st mortgage from the 1st mortgage holder. Do I need a lawyer to do this or can I request one myself ?

I tried talking to the bank`s branch and then to the mortgage department on the phone but they`ve told me that due to privacy laws, I am not entitled to any information about the 1st mortgage.

Thanks for any help.

If you have a good relationship with the borrower just ask them to for their 2008 statement or get them to put a note on their account allowing them to veiw or also receive statements they may or may not be ok with this.

You can carry out a title search at any Licence center in AB anyway but this will only show the lein holders when they were registered and balances at the time

 

[sikander]

QUOTE (TIMWEMBLEY @ Mar 23 2009, 04:32 PM) If you have a good relationship with the borrower just ask them to for their 2008 statement or get them to put a note on their account allowing them to veiw or also receive statements they may or may not be ok with this.

You can carry out a title search at any Licence center in AB anyway but this will only show the lein holders when they were registered and balances at the time


Thanks for the suggestion about the title search, maybe that might show me some recent information about the first mortgage.

The borrowers been in default for a long time so I don`t expect any co-operation from them. As far as I know they`ve kept the first mortgage up-to-date. I want to get a sense of what the overall value is of the 2nd mortgage at present.

Any other way to get the statement ?

 

[Thomas Beyer]

QUOTE (sikander @ Mar 23 2009, 03:40 PM) ...

I tried talking to the bank`s branch and then to the mortgage department on the phone but they`ve told me that due to privacy laws, I am not entitled to any information about the 1st mortgage.
you can always ask .. but you are usually NOT entitled to it .. unless this language is in the 2nd mortgage contract !!

a mortgage is a loan secured by real estate. Loans have certain language .. one element is: you can take title to property if they don`t pay through a court procedure .. and sometimes the language allows you to get annual statements from borrower.

 

[TIMWEMBLEY]

I dont know how to link to the other topic but here is a great post by Barry Mcguire about searching titles. For free you can look at what house sold for going back sometimes to first sale. This is really neat and you can see what a your or somone elses
house was bought for 10-20-30 years ago it will make you shudder!
Thanks Barry


Wade is on the right track. Once you have your title search you can get a copy of anything registered against the title using the nine-digit registration number shown on the title. I just tested this by going on the Land Titles Spin II website and entering the nine-digit registration number of my own mortgage on my personal residence. I was able to purchase a copy of my own mortgage ($5.00), download it and view all 22 pages!

The comments in other posts to privacy probably refer to the Land Titles Act Name Search Regulations. These regulations prohibit the searching of names except under specific circumstances. Titles and anything registered against titles are public information.

In summary, you CAN search and get copies of all titles. Once you have a title, you can get copies of all registrations against that title.

Just a note from the ACRES weekend, a title search is great diligence once you are semi-serious about a property. Once you have the title, you DO NOT have to then order and review every registration! It`s up to you and/or your realtor and your lawyer to decide whether you are concerned or interested in any of those title registrations. If you are, then you order a copy of the relevant document and do further review.

Hope this helps,

 

[JSQuigley]

If you provided the second mortgage after the borrower acquired the property, your lawyer would have obtained a "mortgage statement for information purposes" on closing, verifiying the first mortgage was in good standing.

If the first mortgage goes into default seriously enough to merit power of sale proceedings, you will receive a copy of the Notice of Sale as part of the process.

If you want to renew the second mortgage, you should obtain the consent of the borrower to have your solicitor obtain an information statement directly from the bank. This is, of course, crucial due diligence on the part of your solicitor.

Otherwise, if your mortgage is being paid on time and you receive no Notices of Sale from the first mortgagee, there is really little reason to obtain a mortgage statement for the first mortgage.

Some posters have mentioned that a copy of the mortgage may be obtained from the appropriate Land Registry Office -- which is true. You should already have this document in your possession, however. Your lawyer would have obtained a copy of the first mortgage registration when he oversaw the registration of your second mortgage. If a copy of the first mortgage was not included in your reporting letter, contact your lawyer and request that a copy be faxed to you.

Please note that obtaining a copy of the first mortgage registration may or may not reveal the details of the first mortgage, and some details which are registered may not be the actual terms of the mortgage. Many contemporary mortgages merely state a face value. Sometimes, a fictitious interest rate is registered (i.e. 13%) and the real interest rate is not stated.