My seller took out a loan years ago from a private lender who has since passed away. The lender's daughter inherited the estate but she too has passed away. A year ago the seller was contacted by someone claiming to be a relative demanding that payment on the loan be made to them. It has been over a year since any one has contacted the seller, what should we do? By the way we are in Texas.
You have to make sure the original sellers did an affadavit of heirship and it is recorded. If they had a will, make sure it is probated. If the daughter was the only child and she died without children, you have to look for aunts, uncles on both sides or their children.
You can google died intestate without children texas. Someone is going to be owed that money. You will not be able to get clear title without it. I guess you could buy the property very very very cheap and wait until the statute of limitations runs out on the mortgage. Maybe no one will ever come looking for money.
So should We do a title search to find out or just go to the court house?
Talk with the title company and see what they need to get you title insurance. They are your best line of defense.
@Rick Pozos Thanks!