I saw a property on auction dot com that come up with "Title" doc. The doc stated there are 3 open liens:
-2 small open lien dated before the house was built
-the mortgage lien on the house
The strange thing is the open liens are dated before the builder sold the house. I could not find these liens in the county doc office. How did this buyer ended up having open liens before he brought the house? Didn't he have title search and title insurance? The liens are not that big. Data tree showed me the only one is the mortgage lien also, it did not show me other liens.
Anyways, I wrote to the title company on the title doc about this and hired another title company to do O&E title search.
Any suggestions on these kind of problems during auction?
Thanks a lot!
Prior owner liens. If unpaid, these are still liens. You need payoffs or estimates.
This is so strange, I guess the prior owner in this case is the builder. I wonder why the home buyer was not on hook for that? He brought the house from this builder using FHA and was foreclosed a few years later. Maybe the builder did not pay the vendors but then the whole development need to pay that not just this one house.
Without seeing the title report and pulling copies of the instruments referenced therein as unreleased, nobody here can really help much other than to speculate. Do you have access to the land records to pull docs?
These items could be mortgages covering the entire development that should have been released as to individual lots upon their sale, judgment liens, assessments for water/sewer facilities, more.
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