2 Weeks Past Closing and waiting.... on a $60mil mortgage

[Timothy Smith]

Question First, has anyone come across this roadblock in the past? How long does it typically take to get a mortgage release? It is a $60 mil mortgage attached to a $300k house and the mortgage company has already agreed to release it.

And here's the back story.

I have a my first deal, only problem is its tied to a $60 million mortgage. So here's the story...

This out of state billionaire acquires a giant corporation, not knowing he also bought a 4 unit apartment with it, and this apartment needs a ton of work. So instead of dealing with a project way under his profit range, he finds his best employee and sells it for $15k and uses it as a write off. The current owner (employee of the year) tries to fix it up but during the process becomes sick and discovers a long list of ailments that takes his full attention. To say the least he is not able to do a full rehab himself and all of his reserves go to medical bills.

So here's where I come in, we sign under contract and 3 weeks later ( a few days before closing) my attorney gives me a call and let's me know there's a large encumbrance on the property. It seems in the haste of getting rid of the property the aforementioned billionaire never had his mortgage company release this property. In normal times this would be a mild inconvenience but with the market the way it is, everyone mentioned above is so completely overwhelmed with the amount of work coming in, I'm a bit worried how long all of this will take.