My client bought, at the county tax sale, the back 2500 sq ft parcel of a property fannie mae took back in foreclosure. From the stakes he's seen he owns the entire back yard and maybe 6 inches of the back corner of the house on the front parcel.
Evidently Fannie Mae forgot to pay the taxes on this parcel that was not combined with the parcel that has the house on it.
My client wants to sell the property, notified the buyer of the house, who was told she had also purchased the back parcel. In fact my client recorded title on the property 5 days before the buyer of the house recorded title on the same parcel.
I got a call from attorneys representing the title company that wrote the title policy. This was an exploratory call to find out more info and I was told the title company is researching to see if they insured this situation.
The way i see it, they ran a prelim on the property, probably before they ever had an offer. The county sent notices for back taxes on both parcels to Fannie Mae. Since they recorded 5 days after we did, they had plenty of opportunity to pay the overdue taxes. And since they recorded title on the parcel 5 days after we recorded, isn't this what title insurance is for?
Now I ask you, if they don't make this right for the house buyer, then what do they insure?
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