Posted on: 20th May, 2010 03:06 pm
I purchased a house in PA from a deed holder who acquired the property via an upset tax sale. A year later an attorney contacts me to say a Bank of America mortgage is outstanding on the propery. The mortgage did not come up in a search since the deed and mortgage were not recorded in the same name. Title insurance was not available to me because the deed was not in the last owners name for over 1 year. Who is responsible for the outstanding mortgage?
Hi markc!
Welcome to forums!
The lender holds the lien on the property and has the rights to recover it. The last owner whose name is mentioned on the mortgage docs should be held responsible for the loan. You should immediately contact that person and ask him to pay off the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The lender holds the lien on the property and has the rights to recover it. The last owner whose name is mentioned on the mortgage docs should be held responsible for the loan. You should immediately contact that person and ask him to pay off the loan.
Feel free to ask if you've further queries.
Sussane
Tax sales typically foreclose on any inferior liens such as a mortgage so the mortgage would not apply. Otherwise you are responsible. It depends on your local laws. Contact a local real estate attorney.
