Updated almost 4 years ago on . Most recent reply
Rescission of Satisfaction
When you are in the note space, you can never see everything. This is an excellent example if why Title Insurance is important on an asset. I am doing due diligence on an asset that has a six figure price tag to it. The property is in BK and is being sold by the trustee. During this process, a prior lender filed a rescission of Mortgage Satisfaction. What they are saying (and will have to prove) is the satisfaction they issued and recorded was done on error and they did not receive their monies. In speaking with an attorney, they advised these get held up for years as the title insurance company will bring in a lawyer and fight it out with the prior lender. With it in BK, I hope I can follow it to see how this turns out. It will be interesting.
As I mention, good lesson as an investor why you should have title insurance on your note
- Chris Seveney
Most Popular Reply
Another important lesson is doing a thorough job on due diligence, which you did. By doing that, you avoided having to deal with the seller's problem. He's stuck with a note that we won't be able to sell for a reasonable amount until the title issue gets sorted out.