URGENT!! TITLE IS NOT CLEAN....

2 Replies

Hi Guys,

I made an offer around 2 month ago, now it's almost time to close, but TITLE company find out there's a loan near $10,000 doens't have record since 1985, although it has been transfered between 2 or 3 different owners(no body clean it). I understand maybe there's no actually loan issue for this, but I will take risk. Now it's amost to be closed, I need to make decesion fast.My questions is:

1.Did anybody met this situation ever? Do you suggest me to take this property(good return)? 

2.If I buy title insurance, would insurance can cover any loss arising from that old mortgage? 

3. If we file a quiet title action as clear title, how long and how much will cost?

Thanks a lot!!

Originally posted by @Jennifer Wang :

Hi Guys,

I made an offer around 2 month ago, now it's almost time to close, but TITLE company find out there's a loan near $10,000 doens't have record since 1985, although it has been transfered between 2 or 3 different owners(no body clean it). I understand maybe there's no actually loan issue for this, but I will take risk. Now it's amost to be closed, I need to make decesion fast.My questions is:

1.Did anybody met this situation ever? Do you suggest me to take this property(good return)? 

2.If I buy title insurance, would insurance can cover any loss arising from that old mortgage? 

3. If we file a quiet title action as clear title, how long and how much will cost?

Thanks a lot!!

 1. Yes. It depends on your tolerance for risk

2. No, not if the lien is listed as an exception to title on prelim. The easy way to clear (not "clean") is to track down last owner of the mortgage and obtain a signed, notarized Release and Satisfaction as well as a payoff demand showing zero balance due.

3) Agsin, it depends. I'd budget $4,000 - 6,000 + 4-6 months time. 

Your experience may be different.

@Rick H.

I have question, even though that lien in 1987 not related to the current seller, signed and notarized Release and Satisfaction from him will help? 

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