Deed error keeping me from selling rental...what is my next step?

[Candace Ellison]

I purchased a foreclosure duplex 4 years ago and used the banks recommended Title agent and purchased Title insurance. Last year, I decided to list the duplex for sale and I learned that my deed's legal description was incorrect once I had the property under contract.

The duplex next door to mine is the one that is actually deeded to me and fits the legal description that I have on my deed and vice versa. I filed a claim against my title insurance and was denied several times. I was told that it was not covered because I should have gotten a land survey during my due diligence period and that the policy covers only the land it describes. I contacted the title agent and  I was told it was an easy fix with a scriveners affidavit and reached out to the previous owner who agreed to sign a corrected deed but now the previous owner is not cooperating (previous owner says he is still paying a mortgage on the foreclosed property somehow).  What is my next step to have this corrected? 

I was contacted by an attorney who represents the bank who foreclosed on the property and he told me that they were anxious to fix the problem but it's been over a year now and the updates he gives me are still the same.

[Wayne Brooks]

@Candace Ellison I think you need to understand Exactly what happened, and when.

Make yourself a chart separately for each property.

Buyer buys two duplexes A and B.

Were the legal descriptions correct on the mtg documents, yes or no.

Did the owner default on Both mtgs, or just one?

Did the bank foreclose on the correct loan if he only defaulted on one?

Etc.

You need to understand Exactly where any Deed/mtg errors in descriptions occurred.  This has to be understood before a corrective action can be addressed.

It almost sounds like the bank foreclosed, mixed up the addresses (legal description rules) and you have “owned” the wrong property during this time.

I dealt with a similar issue, two halves of a duplex, where the Original legal descriptions were reversed upon the sale of the units.  Thankfully the bank attorneys found the error, had the error corrected within the final judgment during the foreclosure.