So I am in the process of doing a cashout refi on a duplex I own. Bought the REO property in cash. While doing the title search my attorney (close friend) told me the bank (Bayview Loan Servicing) never served the previous owner in the foreclosure action. No record of this happening. What are my options? Anyone every experience anything like this?

Originally posted by @Kadeem Howell :
So I am in the process of doing a cashout refi on a duplex I own. Bought the REO property in cash.

While doing the title search my attorney (close friend) told me the bank (Bayview Loan Servicing) never served the previous owner in the foreclosure action. No record of this happening.

What are my options? Anyone every experience anything like this?

 Well, your attorney is going to be the best source of options. But, here is my take on things. You could do a "Quiet Title" action. You can sue the bank for "Clear Title". You could "unwind" the transaction and have the foreclosing bank do it properly. You could have a Title Company provide a Title Insurance Policy to see what they say. You can track down the previous owner and give them some money in exchange for releasing all of their rights. You can carry on forward and hope it doesn't come back to bite you sometime in the future.

Defendants don’t necessarily have to be actually served, otherwise vacant properties could never be foreclosed. Each state has their own laws regarding “diligent attempt to serve, serve by posting, or service by publication”.
I assume you bought title insurance, start there if necessary.

BTW, many attorneys tend to be unnecessary alarmist.  This could be much like "the sky is blue"....true, but so what?