Title Affirmative Coverage Due to No Notice to Bank
I'm in the process of buying a 7 Unit building and a title issue came up where the original mortgage has not been shown as discharged. The building went into Foreclosure with the bank around 2008-2010 and was sold in 2013 at auction due to tax liens by the town to Buyer A. Buyer B bought the building from Buyer A in 2015 and never got title insurance and had a lawyer draft up everything. The lawyer is MIA so Buyer B/current seller cannot get the correct paperwork showing the bank was notified of the sale and the town has no records of them notifying the bank as we've reached out. Note I've even tried finding the lawyer and he is just gone, maybe he passed.
My title company has told me they would issue affirmative coverage as its been over 7 years and the bank hasn't done anything at all, no notices to the state, nothing filed legally beyond the original foreclosure notices. They've also said they could apply to get the loan discharged. What would you do in this case. Note the property is $16k and the outstanding loan from 2 previous owners is over $90k. The building needs $180k in renovations so I need to be very careful what I get into as I do not want to spend that kind of $$ if this goes south.