Found an old lien on property bought from Upset Tax Sale

[Hany Morsy]

Hi, i bought a property in LEHIGH COUNTY PA , Sep 2019 , and later on found out there is old lien ( Mortgage ) open not paid off on previouse owner for amount of 81K i'm living in the property over 2 years now and no on comeafter or send notice , the mortgage from 13 years ago and sold many times last company went out of busniess on July 2010 and don't know what company step in , so what is best way to clear it and sell the property, if i find a lawyer do Quiet title action and court sent notice to mortgage company (old one which went out of busniss and definitly new mortgagee or bank took over  make future mail forword will received the notice , i'm worry if i file Queit title action claim at court then mortgagee  received the notice and reponse to dismiss the case at court , if that happend what is my option or what supppose to do if new mortgage show off 

[Ryan Fox]

@Hany Morsy- Definitely worth consulting a real estate attorney in your area to understand your options.  They would normally look at the whole chain of title and see where the defects are.  When I do quiet title actions in California, it's pretty common that there are people or entities that are no longer in existence, so we're not able to serve them with the lawsuit.  We end up publishing the lawsuit in the newspaper to provide them notice of it.  Again, it may work differently in your area, so consult an attorney in your area to understand your options.

[Bob Lee]

Has the property been assigned since the date you purchased it?  If so I don't see an easy fix.  The mortgage has value and the current holder of that note is gonna more than likely want to get paid.   I agree you should have an attorney look over title but expect to be on hook.  The payoff for such a loan at this point will be whatever was left on the note when the borrower stopped paying, plus interest and possible late fees.   You can at a minimum look at the mortgage  terms and see what type it is, how long it was for ect.. This will help you determine what you might be looking at in cost.  Additionally you will find the bank will require the original borrower to request payoff information, they will not talk to you even though your the person responsible.  Responsible in the sense that without a mortgage release you will be stuck with the property.

[Bob Lee]

Sorry.  Not property assigned, rather mortgage.  Ill add one thing to this. I had the same issue.  

[Pargat Sing]

Quote from @Ryan Fox:

@Hany Morsy- Definitely worth consulting a real estate attorney in your area to understand your options.  They would normally look at the whole chain of title and see where the defects are.  When I do quiet title actions in California, it's pretty common that there are people or entities that are no longer in existence, so we're not able to serve them with the lawsuit.  We end up publishing the lawsuit in the newspaper to provide them notice of it.  Again, it may work differently in your area, so consult an attorney in your area to understand your options.

 do you know any attorney who does quiet title actions in california. please refer me

[Greg Soon]

@Hany Morsy

No title search done when buying? Assume you did properly when buying, and bought title insurance, th3ck to see if your title insurance covers

[Greg Soon]

@Hany Morsy

Tax lien is above mortgage lien. When you foreclosed on the property the mortgage lien is wiped

[Peter Walther]

A quiet title action is not a cause of action, you need grounds why a court should quiet your title against the lien of the mortgage and not just because you want it gone.  In addition, I believe a title insurer may be reluctant to insure title if you just get a default judgment against the lender, they'll probably want the court to rule on the merits of your argument and that will only happen if the lender files a response to your complaint.  You might ask a title company to produce a commitment so you can see what they will require to issue a policy w/o exception for the mtg and then you'll probably need to talk with a knowledgeable PA real estate litigation attorney.