Bank will not satisfy mortgage, preventing me from resale
Hello BP! I was hoping to get some help/advice. I purchased a SFH at the end of July. Closed on 7/27. My original plan was to rehab and flip the property, but as I approached my close date, it was apparent to me that I could just close and turnaround and quickly sell for a profit. So that is what I decided. Using my network, I actually received an offer on the property on 7/27 (the same day I closed on the property). The original owner (who I bought from) had a mortgage on the property. They used the funds from selling to pay off their mortgage. The mortgage company / bank is Midland Mortgage. Midland has sent the original owner a paid in full letter. However, Midland refuses to satisfy the mortgage with county until it has been 3-4 months. This means I could be stuck holding the property for another 2-3 months, when we were in a position to close on the resales by the end of August.
My seller wants a free and clear title. We (my attorney who did the first closing) offered a letter of indemnification to the new buyer, but he refused. I have been advised that legally I could force the buyer to close, with the letter of indem. Obviously, I don't want to pursue legal action, but I'd really like to close and move on.
Any thoughts, advice, or ideas?
Thanks!
Chris