What happens to mistakenly unreleased liens in foreclosure?

[Daniel E.]

Scenario:

First position lien from 1998 is unreleased per county records.

Property has been sold 4 times (and those owners received and released mortgages) since this time.

Most recent mortgage has a title policy showing it is in first. Court judicial report shows it is in first and does not mention the 1998 lien in any way. 

If the foreclosure sale occurs and new title is issued, what happens to the old unreleased lien?

[Tom Gimer]

@Daniel E. The property has since changed hands four times. If there was ever a lender and title company involved, this issue was reviewed and cleared each time. This is a perfect example of why owners title insurance exists.

If you truly think the mortgage is open and unpaid because of the nature of the transfers in the chain, don't touch the deal.