WHAT TO DO?? We have had a serious last minute issue arise with the title in a bank owned property that I listed. It appears that there was an unrecorded deed out there to xxxxxxxx Corp. who purchased the property in connection with a foreclosure of a condo lien in 2008. The deed was never recorded and therefore did not show on record as a cloud/hurricane.
That deed was granted subject to the mortgage with Chase that was subsequently foreclosed. To complicate the issue, the substitute trustees were made aware of this issue on 1/22/09.
The trustees did not deal with it properly in the foreclosure action and did not show up in the title work because it is an unrecorded deed. While we were supposed to close a week ago, the condo's association attorney made the title company aware of it.
The title company spoke with the xxxxx Corporation's attorney and he stated that his client's position is not to execute any waiver/disclaimer of interest. He also stated that if a suit needs to be filed to force client to act, so be it, but that if an offer was presented, he would take it to his client.
Could there be a cottage industry in intentional title clouding? Mind you, xxxxCorp. has not paid any of the expenses. No one would insure this-is it dead?? Suggestions PLEASE!!
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