A family member purchased a piece of real estate without a proper title search. An old mortage has surfaced and foreclosure is threatened. What can be done to the previous owner for selling mortgaged property? Can the company hold the pruchaser liable for the mortgage?
Answer
The purchaser can sue the seller, and make a claim on the Title insurance they did get. (It's the title company's duty to find all recorded mortgages or deed in trust) The person holding the mortgage can foreclose and sue the borrower for any shortfall between what the house sells for on the courthouse steps, and what is owed.
Good luck
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