What to do if the house thatI bought may not have had a free and clear title?

I purchased a house a few months ago cash but now  bank is saying that the house is theirs due to the former owner not paying the mortgage. I have all my paperwork from the title company and the sales guy told me that the bank has erroneous paperwork. I just received a letter that states that all the locks will be changed on my house and will be repossessed. Is this legal or do I have any legal right for a lawsuit whether is the real estate company, the title agency or the bank for some type of fraud? Should I speak with a litigation attorney? In Jefferson County, TX.

Asked on September 22, 2011 under Real Estate Law, Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you purchased your home recently where escrow was handled through a formal escrow company where you purchased as part of the transaction title insurance and you obtained fee simple absolute from the seller, you are in good shape to defend the claims from the third party asserting that the former owner did not pay the mortgage and the house would be repossessed.

You need to immediately retain a ral estate attorney to protect your interests. He or she should immediately put your title insurance company upon written notice of the claim to your title and a written letter be sent to the company claiming an unpaid mortgage or truat deed on your parcel.

Good luck.

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