I have a property under contract & a buyer in place. Problem is the last 2 owners bought house over 22 years ago via wrap around mortgage (no banks) and title is clouded.
Has anyone ever dealt with this?
Have you gone to the holders of the previous wrap around notes & gotten a payoff statement or request a release? How would you handle this?
Has the Wrap and underlying Mortgage been paid in full? If not maybe they can be at closing. Why the cloud? Need more info. Herbster
From a verbal conversation with the current owner, the 1st wrap has about $1,500 that is owned. Don’t know how much is owed on the 2nd wrap. I’m going to try to find out this week.
So I’m assuming you did some pre-title work and found out that one or possibly two leins were on the property??? No problem pay them off at closing or am I missing somethin? Herbster
It wasn’t during pre-title, but during the actual title work. Both liens are 22 years old. So I’m trying to find the lien holders so I can see how much they get paid at closing.
I think one of the lien holders has been dead for a few years.
The title co. should be able to tell you how much the leins are. So have the leins paid off at closing and have the title co. pay the lein holders or their heirs. Herbster
rgchamp,
If one of the lien holders is dead it is extremely difficult to get the title cleared. You will have to get all of the dead lien holders direct heirs to sign off on the release. Otherwise they could come back in the fiuture and lay claim to the title. The title company handling the sale should be able to help you with this.