Posted by MonicaFL on 8/24/10 9:43pm Msg #350314
Never in my wildest Dreams did I
think I would be confronted with something like this - and its all due to the lack of the title company to record the title transfer. In Sept 1995 I sold a double wide mobile home which was homesteaded. The borrower did what she was supposed to do and all was well until she died in February. Around the 6th of August I receive a summons that I am being named as a Defendant in a foreclosure action regarding this property. I responded as noted in a timely manner and stated that I did not have any interest in this property because I sold it in 1995. Well, the paralegal for the attorneys handling the foreclosure called me today and stated that the two titles (it was a double wide) were never transferred out of my name into the borrower's name. Also, when I paid off my loan to the persons I bought it from, the lien was never released -at least according to the tax collectors office. So, my advice to everyone here is - if you sell something, be it a car, home or a cat - make sure you check the records and title has transferred properly and the lien released. What a nightmare. Of course, the title company is out of business!!!!!!!!
| Reply by Kay/IL on 8/24/10 10:41pm Msg #350322
Check your state's regulatory division for title insurance companies. There may be a title company that is handling that now defunct title company's claim.
| Reply by Cari on 8/25/10 7:52am Msg #350341
so what happened? continue the story...how did you get out
of this mess?
| Reply by MonicaFL on 8/25/10 4:08pm Msg #350442
Re: so what happened? continue the story...how did you get out
Working on it - but it a real nightmare!
| Reply by Bob_Chicago on 8/25/10 8:49am Msg #350346
How in the world did the new lender, now foreclosing,
make a loan to your buyer, without them being in title and the old lien still being of record?
| Reply by meganPA on 8/25/10 9:42am Msg #350355
Re: How in the world did the new lender, now foreclosing,
Probably because they recorded the mortgage without recording the deed, which is not only the wrongdoing of the title company, but also the recorder's office in that county.
If you haven't done so, you need to find out who the underwriter for that defunct title company is and file the claim through them. That's what underwriters are for. What a mess...sorry you are going through this. Good luck!
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