I've purchased a first position NPL on a home in Atlanta GA, Fulton county. My assistant just noticed that the legal description has the incorrect street address referenced on all of the assignments and also on the original warranty deed. My concerns are twofold:
1. Enforceability for foreclosure
2. Passing title review/insurability should I take back the home and resell
Any thoughts on how to mitigate this?
Is there title insurance ? If so they can file a claim (costs about $150) and get it corrected. I just ran into a similar issue in Alabama and it took about 6 weeks but it got rectified.
I have a great attorney in Georgia who can also assist if you want me send you her contact info.
Thanks Chris, yes there is a lenders policy. Please forward me that attorney's info, I very much appreciate it.
You’re unlikely to have any trouble. However, if you want to make sure you’re ok, I’d try to nail down the foreclosure contact in the county clerk and ask whether you’ll have a problem in the event you order foreclosure for default.
@Bob Malecki If the defect is bad enough, you'll need to file a superior court action to reform the previous deeds. Your Georgia attorney will be able to tell you whether this is necessary. If it is, you're probably looking at a claim on title insurance and several months' delay.
To @Paul Vincent 's comment, the clerk of court in Fulton County is unlikely to be any help. They don't handle foreclosures; they just record the deeds.
I'm not a lawyer and this is not advice, but here is what I know about property descriptions in Fulton County deeds:
1) Property descriptions here usually take one of two forms - either metes and bounds (i.e., "Beginning from an iron pin two hundred and twenty feet from the northeast corner of...") or making reference to a plat map (i.e., "Lot 21 of the Green Hill subdivision as recorded in Plat Book 23 at page 104.")
2) In both forms of property description you'll often (but not always) see a sentence at the end of the paragraph that says "Property is known as 635 Green Street according to the present system of numbering houses in Fulton County, Georgia."
I would think that if the formal description in #1 is correct, even if the address in #2 is incorrect, you still have an enforceable claim on the real estate. Have a Georgia foreclosure attorney review and advise you.
Thanks to all for the input. I plan to file a lenders title ins claim to start. @Dan Mahoney fyi the 1) description has the typo with the wrong street number, 2) actually references the correct address
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