MORTGAGE LIENS?

[Daniel Sisto]

Good morning BP. 

About 3 months ago I was dealing with a seller of a beautiful town home in a great area. The home has been vacant for quite some time and needed about 25k in rehab, Throughout the negotiation process we finalized on a number at 83,000. These homes were selling quick around 150k- 160k. These homeowner stated that she owned the home Free & Clear and that she needed this money for further investments. So after we sign the contract, get the paper work over to the title company, come to find out there is a mortgage on the property. 

Fast forward 3 months, the deal never got done & the seller said she needed to clear a few things up. After meeting with her again yesterday she gave me the run down on how the home was in her ex husbands name, the bank tried to foreclose on the home but could not since the bank (HSBC- who has now been bought out by First Niagara)  seperated the note and the deed upon purchase. While doing this they never filed the deeds with the courts only electronically with MER. So she is claiming that since the warranty deed has now been transferred into HER name, that there is no mortgage lien on the property only on the previous owner. 

I was always under the understanding that these liens follow the property and the new owners??? 

I know this is confusing that is why I am asking for advice. I know i can go get the title ran again but would rather try and clarify before wasting another couple hundred bucks.

Thanks BP

@Jerry Padilla