We are in the process of buying a short sale home. There was a title issue where an assignment was not recorded with the county. This has been resolved and recorded. We were notified from our attorney that the title still has another issue and needs to be resolved. We have the email from the title company describing the issue but are not sure how to proceed forward. Our attorney is not too experience with title issues so they are not too much help. We would like to know what the below means and how to proceed forward.
The email from the title company:
We have reviewed the recorded Affidavit for Missing Assignment and spoke to underwriting counsel. Unfortunately it will not resolve the issues with this file. The recorded affidavit states that there is no assignment from Golden First To Deutsche Bank and that you are unable to get one as they are out of business. The documents needed are: 1. Golden First to MERS for IndyMac
2. As the complaint in the foreclosure proceedings refers to additional money loaned and then consolidated, the lender being IndyMac, we will need the loan with IndyMac in the amount of $52,259.80, as consolidated with the original Golden First Mortgage, forming a lien in the amount of $552,763.51 recorded.
3. Further assignment for the consolidated mortgages is then needed from MERS for IndyMac (which is now CIT Bank) to Deutsche Bank. Another mortgage on the property, which has been satisfied shows an assignment from Bank of America, N.A. successor by merger to Golden First Mortgage Corp.
This was in 2016 so Bank of America, N.A. may be where you need to go.
In lieu of the two assignments, underwriting counsel will accept an Assignment of Mortgage to the purchasers, Scott Smith, with the assignment reciting that its purpose is to merge the fee and mortgage interests. Deutsche Bank will also have to give the note to Smith.
Any help and or direction would be much appreciated.
IndyMac went belly up in 2008 with the fall of the real estate market.
FDIC sold IndyMac deposits to IMB HoldCo LLC in 2009, who turned into OneWest Bank.
There was a lot of sub par mortgages being originated with a lot of robo signing that got the lender into trouble.
Sometimes you have to go through the FDIC to get information. There are a lot of lawsuits floating around due to the failure of the bank and title issues.
The problem that you have is that the seller is obligated to provide a marketable (clean) title during the sale of their home. It's not your job to fix the seller's problems. You can't speak to their lenders due to privacy issues.
The lawyers will have to hash it out.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.