Title Question
I purchased some investment property last year but now I am questioning weather I actually own the property.
Basically, owner #1 obtained the property from Bank 1 and the warranty deed is dated March 4, 2002
Owner #1 then quit claimed the property to owner #2 on April of 2001. That's right, 2001!!
owner #2 then sold me, owner #3, the property and the warranty deed is dated June 14th, 2002
We closed at a title company. Shouldn't they have caught this?? Do I really own the property? I obtained a mortgage on the property and am facing foreclosure due to a property flipping scam.
Can I use this obvious title error in getting out of this jam? Please advise
How did you purchase the property?
Did you bring your own financing to the deal, or take over an existing loan?
Who is foreclosing and why? Did you fail to make mortgage payments?
Did you purchase owner's title insurance?
Well, I obtained a mortgage on the property under a conventional loan, but now I'm foreclosing because I got scammed and the appraissal was grossly and fraudulently exagerted. My unique situation is actually explained in detail on another topic dated 8-16-2003
Once I realized I was scammed I stopped making payments. I closed at a title company and I'm not quite sure if I purchased title insurance, but my understanding is that the lender probably required it.
I figured if they could make a claim to the title not being cleared, It would satisfy the mortgage and help clear my credit.
im quite sure the lender will check into your claim so you should start making payments its your credit youll be hurting if you stop payments.
You should have received title insurance when you bought, which would then let you make claim against that insurance co. for its failure & negligence in letting all this happen.
DO NOT settle with anybody without first making such a claim, as you might void and destroy your right to go after your own insurance by taking any 3d parties' money, or making ANY agreement with any 3d party.
Just like in a car wreck, you must deal with your own insurance co. first, and if you don't, and make any deals with, or take money from anybody else first, you then waive your right to make claim on your own policy.
There are typically two title insurance policies with a transaction of your type. You as the buyer should have purchases a title insurance policy and the lender will require a lender's title insurance policy, which only insures the lender, not you. You need to determine whether or not you purchased a buyers title insurance policy, and if so you should be covered under that policy. Title insurance is specifically to insure clear title for the buyer, and if it is determined that you do not have clear title you should file a claim with the title insurance company for your loss.
[addsig]
sounds like its time to put your title carrier on notice.
Thanks for all your comments. I will be contacting the title company this week to see what, if any, coverage I have. At the very least the lender will be insured thus preventing them from coming at me hard. I'll let ya know what I find out.