If a mortgage from a previous owner was never released and now it shows up on the title search everytime, how do we or can we clear this ourselves?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a mortgage from a previous owner was never released and now it shows up on the title search everytime, how do we or can we clear this ourselves?

I bought this house 9 years ago and refinanced 2 years ago. This previous owner’s mortgage showed up on title search. Some how the lawyer was able to get around this to close re-finance. Now we are refinancing again and the same mortgage is showing up again. The lady I’m refinancing with says this will follow us until we get this cleared. We have called the title insurance co and they say they have tons of these but it’s not really their problem, they say they will, “Do what they can” whatever that means. Is there a way I can get this cleared up myself?

Asked on August 3, 2011 Alabama

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

When you purchased your home, you obtained title insurance. When you refinanced the loan on your home,  you obtained title insurance.  Look at the preliminary reports and the title insurance policies to see if the prior owner's mortgage/trust deed shows up on the documents.

If it does not, contact all of your title insurers about the previous owner's mortgage now showing up on the title search of your home now and make a claim that its cloud gets removed. This is why people buy title insurance on a purchase and a refinance of a loan.

If title refuses to clear the cloud on title that you desire by a stated date, you need to consult with a real estate attorney about bringing an action against your title insurers.

Another way to resolve the title issue is to contact the mortgage company that had the secured loan on the property when owned by the prior owner and request a full reconveyance of this mortgage to record on your property. If provided and recorded, you clear up the cloud.

Good luck.

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption