Re: TITLE PROBLEM…what do you folks think??? - Posted by Sue(NC)
Posted by Sue(NC) on March 25, 1999 at 17:49:59:
Your post brought back some bad memories…
Bid on a foreclosure a while ago. In those days I would search the title to the property by checking deeds of trust, liens, and that sort of thing- but I never checked behind the trustees to make sure they did their jobs correctly (I do it now, EVERY time, and can tell you- they screw up from time to time)
Anyway, one trustee had failed to notify the 2nd holder about the impending sale of the 1st. The 2nd holder was claiming no knowledge of the 2nd mortgage (remember this when you hear those due-on-sale arguments about how much the lender knows/cares).
The solution was that the trustee who held the sale posted an INDEMNITY BOND with the title company. The bond stated that the trustee would repay all losses to the title company should the 2nd holder reappear. The title company, in turn, gave us clean title insurance (WITHOUT the exclusion for the 2nd).
Check with your title insurer- perhaps they will accept a bond from the bank, & insure your title.
btw- we used Lawyer’s Title, and they were OK with the bond.