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- Schedule At-A-Glance
- Module Descriptions
- Meet the Speakers
- Module Outlines
USFN CASE Files is a four-part series. The Spring 2023 series is the first, focused on Title, and the second will take place fall 2023. We will have two more series in 2024, one in the fall and one in the spring.
Series 1: Title |
All Modules @ 1-1:30 p.m. CT |
Module 1: Condominium & Municipal Superliens |
March 16 |
Module 2: Municipal Sales & Liens |
March 23 |
Module 3: Protecting Interest: Senior Sale Coverage & Bidding |
March 30 |
Module 4: Protecting Interest: Interpleader & Surplus Issues |
April 6 |
Module 1: Condominium & Municipal Superliens – Protecting The Mortgagee Asset
Scheduled for March 16, 2023 | Time: 1-1:30 p.m. CT
From the late 1980s to the present, “super-priority” lien laws have been enacted throughout the country enhancing HOAs and taxing authority’s power and ability to collect fees at the peril of mortgage holders. This session will cover these statutes that are the single-biggest emerging threat to lenders due to confusion of how priority legislation works. Given the high number of defaults, many first and second mortgage interests have been lost due to misconceptions about priority lien laws.
Scheduled for March 16, 2023 | Time: 1-1:30 p.m. CT
From the late 1980s to the present, “super-priority” lien laws have been enacted throughout the country enhancing HOAs and taxing authority’s power and ability to collect fees at the peril of mortgage holders. This session will cover these statutes that are the single-biggest emerging threat to lenders due to confusion of how priority legislation works. Given the high number of defaults, many first and second mortgage interests have been lost due to misconceptions about priority lien laws.
Module 2: Municipal Sales & Liens
Scheduled for March 23, 2023 | Time: 1-1:30 p.m. CT
This session will explore the world of municipal tax sales, liens, receivers, and other issues that take priority over a mortgage. These issues can arise due to delinquent taxes, poor property condition, or local regulation of housing. Additionally, participants will examine trends in affordable housing solutions that are starting to gain traction in some localities, which are intended to address a lack of affordable housing.
Scheduled for March 23, 2023 | Time: 1-1:30 p.m. CT
This session will explore the world of municipal tax sales, liens, receivers, and other issues that take priority over a mortgage. These issues can arise due to delinquent taxes, poor property condition, or local regulation of housing. Additionally, participants will examine trends in affordable housing solutions that are starting to gain traction in some localities, which are intended to address a lack of affordable housing.
Module 3: Protecting Interest: Senior Sale Coverage & Bidding
Scheduled for March 30, 2023 | Time: 1-1:30 p.m. CT
This session will dissect the senior sale process in both judicial and non-judicial jurisdictions. It will touch on general requirements, formulating a bidding strategy, sale coverage, and requesting surplus funds.
Scheduled for March 30, 2023 | Time: 1-1:30 p.m. CT
This session will dissect the senior sale process in both judicial and non-judicial jurisdictions. It will touch on general requirements, formulating a bidding strategy, sale coverage, and requesting surplus funds.
Module 4: Protecting Interest: Interpleader & Surplus Issues
Scheduled for April 6, 2023 | Time: 1-1:30 p.m. CT
This session will review the post-sale disbursement of funds after a foreclosure sale results in surplus. It will focus on paying off all allowable costs of the sale and then satisfying the lien of the foreclosing lienholder, identifying any junior lienholders and their priority for payoff, locating and obtaining appropriate documentation, and finally locating the borrowers to forward any remaining proceeds. If funds cannot be disbursed to the proper party, then filing an interpleader with the court.
Scheduled for April 6, 2023 | Time: 1-1:30 p.m. CT
This session will review the post-sale disbursement of funds after a foreclosure sale results in surplus. It will focus on paying off all allowable costs of the sale and then satisfying the lien of the foreclosing lienholder, identifying any junior lienholders and their priority for payoff, locating and obtaining appropriate documentation, and finally locating the borrowers to forward any remaining proceeds. If funds cannot be disbursed to the proper party, then filing an interpleader with the court.
Each module is led by two to three carefully chosen USFN member firm speakers selected to ensure a range of different but balanced perspectives about the various title topics.
Meet the speakers for Series 1: Title
Meet the speakers for Series 1: Title
Module 1: Condominium & Municipal Superliens – Protecting The Mortgagee Asset
Scheduled for March 16, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
Scheduled for March 16, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
- Municipal liens
- HOA / condominium liens
- The superlien:
- General anatomy of an HOA superlien
- Rolling lien
- Excluded amounts
- Priority vs. non-priority
- Mitigation and satisfaction of the priority lien
- Redemption vs. satisfaction
- HOA foreclosure sale
- Post-sale distribution of proceeds
- Common disagreements
Module 2: Municipal Sales & Liens
Scheduled for March 23, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
Scheduled for March 23, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
- Tax sales
- When taxes are sold
- What it means to “sell” outstanding property taxes
- Notice requirements – your best defense
- Redemption rights
- What to do when sold taxes are converted to tax deed
- Property conditions
- Inspection and registration requirements
- Code violation vs. demolition
- Mortgagee’s right to enter and secure
- Working successfully with the municipality and its inspectors
- Receivers
- Drastic step: when taken
- Receiver’s costs and receiver’s liens
- How to clear a receiver’s lien
- Should you release the mortgage?
- Ground rent redemption
- When the mortgaged property is a leasehold instead of a fee
- The “100 year” lease
- How a ground lease differs from fee title: very little
- Buying out or “redeeming” ground rent
- ADU/MPDU and deed restrictions
- What is an MPDU property?
- Who can own an MPDU property?
- Occupancy requirements
- ADUs defined
- Purpose of ADUs and MPDUs
- How ADU and MPDU requirements affect mortgagees
Module 3: Protecting Interest: Senior Sale Coverage & Bidding
Scheduled for March 30, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
Scheduled for March 30, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
- Property inspection: Why get a property inspection?
- BPO/appraisal
- Occupancy
- Possible citations
- Obtain title report: Why obtain updated title report?
- Confirm lien position
- IRS liens
- Super priority liens
- Bidder’s deposit: How to make deposit?
- Can it be waived?
- Formulating bid: What should be considered when calculating bid?
- HOA fees/condo fees, water, and sewer, recordation/transfer tax, commissions
- Valuation, risk, and resale
- Other fees
- Appearing at sale: How can you appear at sale?
- In person
- Telephonically
- Post-sale: How to determine if sale was compliant?
- Confirm the particulars of sale (e.g., notices sent, publications ran, SCRA/PACER searches)
- Title commitment?
- Surplus funds: Who should request surplus funds?
- Distribution
Module 4: Protecting Interest: Interpleader & Surplus Issues
Scheduled for April 6, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
Scheduled for April 6, 2023 | Time: 1-1:30 p.m. CT
Following are sample topics to be covered in this session:
- Allowable costs of sale: What expenses of sale are approved costs to be deducted from the proceeds and approved at the audit?
- Attorney fees
- Recoverable vs. non-recoverable costs of sale
- Trustee’s fees
- Proration of taxes, HOA/condo, other approved county/state liens
- Paying off the foreclosure lienholder: Determining foreclosing lien’s full payoff vs. allowable expenses to be recouped
- Calculating interest from bid to settlement
- Obtaining client documentation, such as corporate advances, escrow advances, and chain of title
- Recoverable vs. non-recoverable costs
- Tracking down lienholders
- Reviewing title
- Tracking down transfer of ownership of junior liens
- Confirming judgments, lienholder representation, and balance of payoff
- Following up on title clearance of release of liens
- Senior or junior liens
- Standard senior lien sales follow first in time, first in right
- Junior lien sales may/may not pay off the senior with the proceeds
- Difference between deeds of trust vs. senior liens, such as IRS, HOA/condo liens, or tax sale
- Is there a process for lienholders to submit claim for approval from court vs. trustee determining on own review?
- First in time, first in right distributions: Review of dates and recording sequences is crucial
- Identifying recording dates and liber/folio, book/page, instruction number in recording of liens
- Tracking down correct lienholder’s contact information
- Obtain tax documentation, incorporation documentation, and confirmation of good standing
- Assignments, transfer of note, and potentially original note
- Payoff through date of sale
- Recoverable vs. non-recoverable costs
- How to submit funds into the court registry: When and how to submit into court registry?
- Judicial vs. non-judicial
- Cannot locate the lienholder or borrower
- If borrower is deceased and estate is no longer being represented
- Borrowers do not agree on how to collectively split proceeds
- Complying with court requirement to evidence due diligence to locate parties
- Filing interpleaders, which provide how surplus should be distributed based upon title review and/or court audit and issues that arise which complicate compliance
- Attending hearings
- Requesting fees for time expended from proceeds
