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HURRICANE ON TITLE! HELP, HELP

By
Real Estate Agent with O'Donnell Properties

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!!

Geoff ONeill
John L. Scott Medford - Medford, OR

Sounds like a big problem.  What was the consideration for this lien?  Was it the condo association's lien?  Did they sell it to a collections agency?   

Mar 30, 2010 01:58 AM
Ernie Steele
Lebanon, PA

Camille...I had something very similar to this happen back in November with a listing (not under contract)...I got a call from the US Attorneys office (that will shake you up) that my listing had a government lein on it and I had to remove it from the market...Called seller who had bought the property at sheriffs sale to flip it...He didn't know what I was talking about but we took it off the market...Short version is the government never properly filed the lien...My seller had a good deed and we put it back on the market...Good Luck.

Mar 30, 2010 02:10 AM
Camille O'Donnell
O'Donnell Properties - Queenstown, MD

Geoff: Yes, it was the condo's assoc. lien and the xxxx Corp. only paid $1,629. and is being deliberate on holding on to their interest. I don't believe it was sold to a collection agency, it appears to have been handled with the condo's attorney.    

Mar 30, 2010 02:12 AM
Camille O'Donnell
O'Donnell Properties - Queenstown, MD

Ernie, yea, when the US Attorneys office calls-that will make me sit up straight!! You were lucky things worked out for you. In this case the lien was filed but it beats me why xxxxCorp. wants to hold onto it?? 

Mar 30, 2010 02:16 AM
Anonymous
www.evdepazar.com

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May 19, 2012 09:54 PM
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