Condominium Foreclosure
I recently purchased a condo on the the foreclosure auction that the condo association foreclosed on due to non payment of fees. The mortgage on the property is not in default and the sale was conducted subject to the first trust. It came to light after the sale that only the initial mortgage issuer had been notified and not the current holder because the re-assignments had been misfiled (different lot and square) and didn't show up on the title search. Can anyone shed any light on the likelihood of getting title insurance in this situation? [ Edited by nancybaer on Date 12/30/2003 ]
I would definaly get a RE attorney involved in this one. Because of the mishap, things are a little twisted in there.
[addsig]
I agree. I would consult with a real estate attorney about that one.
You should be able to get title insurance. As long as the Auction was conducted properly, these glitches generally will not undo a sale. You got a deed with the correct legal description-right???. The default servicing company always gets title insurance to cover these things.
The 1st mortgage is still intact and their security was not indangered by the foreclosure of a junior obligation. You need to be sure that you make the payments on time & with good funds to the first mortgage holder. There's the possibility that they may call this loan. Therefore, you should prepare for this eventually and hope for the best.