Can I Still Foreclose After Being Sold With an Unpaid Lein???

[Alex T.]

I invested with my traditional IRA account as two different promissory notes for the same borrower on two different flips. One promissory note for one property and one for the other. Unfortunately about 1.5-2 years ago they have not been paid (way past the maturity date) and the borrower says "they will pay" and nothing has happened so far. The plan is to foreclose and regain them as assets into my IRA then up to me to do what I want with both properties (in a picture perfect world)

Title company sold the property too while the liens were not paid. How does that even work??? Aren't liens intact so the borrowers can't sell a house until the liens have been paid off?

Long story, short can I foreclose on both properties after 1.5-2 years after they were sold with a pre-existing unpaid lien (with a recorded deed of trust) when there's already new owners living in them???

Your help is GREATLY APPRECIATED!

[Logan Hassinger]

@Alex T.

To be clear Title company didn't sell the property, the seller sold it and unfortunately, it sounds like the prom notes and DOT's were not found when the title company did a title search.

Now if the prom note and DOT’s where recorded after the property was already sold, you will have some issues. In any case I would contact the title company and provide proof that the prom note and DOT was executed and recorded prior to the borrower selling the home to a new owner.