Neighbor Borrowed Money, Securing My Property!
I bought a property Sub-2. Got the Deed, had it recorded.
While cleaning up trash on property, neighbor comes out and says he owns the only driveway to both properties.
I get the plat and will have the property surveyed to make sure that what the legal description says is my property really is my property.
I went to the Public Records today and looked up the records (again) on my property and also the neighbor's.
Found out the following:
1989: land on which both properties sit is deeded to A + B (A is neighbor, son of B), joint tenancy warranty deed.
1991: B deeds property that says E 370 feet, etc to A
1994: A + B deed a part that is N of all that property to C.
1998: A deeds property that says E 370 feet, etc to B
1999: A + his wife deed his property to himself only
1998: corrected joint tenancy deed in which A deeds E 370 feet, etc to B
2002: A gets a mortgage for $ 10,000.00 and uses property that says E 370 feet, etc as security.
The property that says E 370 feet, etc has been deeded to me in Sub-2 transaction.
Mortgage never showed up in the title search, I only discovered it because of the dispute over the land and property lines.
What are the implications and what should I do, legally?
Ladybug
[ Edited by Ladybug on Date 11/06/2003 ]
Quick talk to your real estate attorney! This seems to be an important issue which needs to be handled with great care.
Thank you, I sure will talk with my attorney, no doubt about that.
Just hoped to get some info, before I go talk to him, and also share this experience with y'all, it may happen to somebody else and then it won't be such a surprise.
The neighbor is the son of my seller, and a real you know what!, saying he owns part of the property I bought, and pointing out curved lines, instead of straight lines!; all curving to include what he wants or thinks to be his land.
The mortgage did not show up on the tiltle search so I suspect, not even his mother knows he did that!
Ladybug
You should have a discussion with whoever did the title search. I almost always get a title policy to ensure that this type of problem never comes up. No survey? If you have to, you can title the property back to the seller!!
I don't want to title it back, I got too much money and energy invested as it is.
There is a survey, I am having it repeated for security and because I have the house for sale and want the problem solved before it sells.
I will be talking to my attorney tomorrow anyway.
Ladybug
Ladybug,
Please let us know what your attorney advises! This is an interesting situation. Good luck
[addsig]
The survey will be done this weekend, and I should have it latest by Monday.
Monday I will have a face-to-face talk with my attorney.
Will keep y'all posted!
Ladybug
From your description you will have an easement by necessity or prescription. Your attorney can explain this in detail.
[addsig]
Why should I need an easement?
The neighbor does not own, and did not own the property "E 370 feet, etc" at the time he put it up as security for the mortgage of $ 10,000.00. The way I see it, is that he used a previous deed in which he DID own that particular property to get the loan. But that deed was already superceded by a new deed where my sellers became the owners of that property, so he didn't have the right to borrow money on it.
Ladybug
Ask your attorney about slander of title.
Thank you, DaveT, I sure will. I will be seeing my attorney on Monday.
I am quite curious about this whole issue. I discovered this fact just by chance. It doesn't show up on the chain of title. The deed to the property that I acquired Sub-to didn't have a cloud.
Only because the neighbor, who is my seller's son, started making claims on "my" property prompted me to get a plat, and to have a surveyor re-check the property lines. Out of curiosity I decided to check on the neighbor's property, and saw the same back-and-forward of deeds, which I found on the seller's. Then, there was one mortgage in the neighbor's name, so I decided to pull it just to see how much he owed on his house. And there I saw, to my big surprise, that he put my seller's property (now mine) up for security! My, what a nerve, I thought.
BTW, I had never heard of slander of title, but then, I am learning a whole lot because of this issue.
Thanks again for the pointer!
Ladybug
Mortgage with your property as collateral?? How could that not create a lien on your property?? It get's screwier all the time. Sure will be a lesson for everyone here!
egrinch
[addsig]
Dear Ladybug,
Your attorney will explain it all to you. Slander of title www.etc.etc. I am sure it will all come right. The ziggles in title are the human condition.
I am sure your attorney will send a nice letter and then sit down and work it out with proper easements and recordings if not I am sure a simple action will bring all dogs to heel.
The Land Survey will expose the problem and utilizing it as the plot point all matters can be corrected. Be a fun case in damages if the sale fell thru. oops ignore.
Lucius
I already posted the results in the Subject to forum, but want everybody here to know it too:
According to the surveyor and the lawyer I now own both houses! They are both on my property!
We are having the abstract completed and the official RE lawyer's opinion and then my lawyer will send a nice letter to the son to please vacate the house in so many days.
I sure didn't expect this to happen!
The surveyor spent the whole weekend and today on it to make absolutely sure, and there is no doubt about it, I own both houses, they are both on my property and the mortgage he took out on my property will be his problem only and places no problem for me. And even if it would I could easily refinance it.
Isn't this a surprising turn of events?
Ladybug
Wow- that's what you get for being an *$$hole. There is justice after all... I'd love to see the look on that guy's face when he reads the letter!
Good deal laybug. Now that is the way to hang in there and watch the tides turn in your favor!!
You gotta love that!!!
Thank y'all for your kind replies; it sure tickles people!
Now we got to wait 10 work days for the abstract to be completed and to get the official RE attorney's Opinion. The abstract, etc was officially requested on Nov.10, the 11th doesn't count, was a holiday. We expect to have the official wordings, etc on Nov 25th.
I will keep y'all posted.
Ladybug[ Edited by Ladybug on Date 11/12/2003 ]