Handling Ancient Mortgages in Pennsylvania

[Kalman G Szabo]

Dear Fellow Investors,

I have a question related to title.

Bought a house on sheriff sale, has an unsatisfied private person mortgage from 1986, with an expiration date in 1996. Mortgagee deceased, her trust was holding the note, and satisfaction was not recorded. Presumably, the sum was paid off, anyways, no foreclosure on the mortgage ever started in 26+ years.

Afterward, Bank of America did lend a substantial amount on the house (75K) in 2013, which was roughly its value back then (now it's 200-220k). This was the foreclosing mortgage on the sheriff's sale we bought. This is only important as much as the previous unsatisfied mortgage didn't bother them.

Question: should I worry about cleaning up the title if I were to sell the property? Obviously can be done with a quiet title, however, that might be overkill in terms of cost and time. Various sources state that after 20 years passed from the final due date a title insurer can add an exclusion to the policy. Otherwise, PA does not have a statute of limitations on starting mortgage foreclosures.

Does anyone have experience dealing with such in a more efficient way? E.g. title insurance exclusion, etc.?

Thank You!

P.S.: @Steve Babiak, @Chris K., @David Krulac, I believe you guys have an idea on the above.

[Peter Walther]

I suggest you ask a title agent to issue you an owner's policy.  The commitment will tell you if the underwriter believes the 20-year statute of limitations has run and they will insure without exception for the prior mtg.