Recording Mortgage Liens
In Florida the mortgage and other liens has to be filed in the county where the property is located to be considered valid. Is it the same in other states?
I thought liens had to be recorded on the county or city level to be a valid lien?
Yes liens are normally recorded at state, county and city level!
So why the question?
[addsig]
My question is because a friend bought a property that showed no liens last year but this year he got a letter from a company stating they have a mortgage on the property.
No one can seem to find one recorded. These folks are challenging the claim because they state they should have been notified and were not.
How do you know it did not show? What type of research was done?
[addsig]
Before he purchased he went to a title company and had a search done. The report came back showing only the tax lien no others.
He asked the company claiming a mortgage for paperwork and they stated refused - said it was confidential - which makes no sense.
I spoke to the previous owner and he stated he had no knowledge of any mortgages when he inherited the property from his uncle. I got copies of the probate order and nowhere is there any lien from a mortgage nor did these guys ever make a claim when the estate was in probate.
I figure they are trying a scam.
Contact should be made with the Title Company who did the research and I am assuming that title insurance was obtained on the subject property! If no title insurance were obtained it would be vary suggestive to get legal council.
[addsig]
It was a tax deed sale so not title insurance. I actually had a friend check out the company that the owner has apparently had several cases for trying stuff like this before and getting convicted.
Apparently the property has a lot of value now as some developer wants it. My friend is going to call the court who did the last prosecution to see if he can file a complaint with the police so I check the laws and we can record all his calls with this guy
linlin
It would be most helpful to include all the facts/details when you ask a question so that posters do not have to spin their wheels.
[addsig]
Why would anyone have to spin their wheels? My question was very simple - do mortgages have to be recorded with the county in other locations like they do in Florida. That was all I asked. The additional details I included because you asked in one of the responses you made.
Those details were not relevant to the question.
OK, simple answer: No, a mtg or D/T never HAS to be recorded....but if it is, it is done in the county of the property.
BUT, I've seen and been involved in situations where the mtg or D/T or DEED ( !) was not recorded for years...but was still totally valid.
And the only way a buyer can ever protect himself when buying is to demand or buy a title insurance policy on the property, so if a mtg or D/T or deed does show up later, the title insurance would have to pay your damages or clear that lien off the record.
Johnmerchant is correct,
Below is Florida Law on the issue.
Assignment: No assignment of a mortgage upon real property or of any interest therein, shall be good or effectual in law or equity, against creditors or subsequent purchasers, for a valuable consideration, and without notice, unless the assignment is contained in a document which, in its title, indicates an assignment of mortgage and is recorded according to law.
701.02 Assignment not effectual against creditors unless recorded and indicated in title of document.--(1) No assignment of a mortgage upon real property or of any interest therein, shall be good or effectual in law or equity, against creditors or subsequent purchasers, for a valuable consideration, and without notice, unless the assignment is contained in a document which, in its title, indicates an assignment of mortgage and is recorded according to law. (2) The provisions of this section shall also extend to assignments of mortgages resulting from transfers of all or any part or parts of the debt, note or notes secured by mortgage, and none of same shall be effectual in law or in equity against creditors or subsequent purchasers for a valuable consideration without notice, unless a duly executed assignment be recorded according to law. (3) Any assignment of a mortgage, duly executed and recorded according to law, purporting to assign the principal of the mortgage debt or the unpaid balance of such principal, shall, as against subsequent purchasers and creditors for value and without notice, be held and deemed to assign any and all accrued and unpaid interest secured by such mortgage, unless such interest shall be specifically and affirmatively reserved in such assignment by the assignor, and no reservation of such interest or any part thereof shall be implied.
[addsig]