Buying 1st pos. NPN-- title issue question

[Bob Malecki]

I'm purchasing a first position NPN on a home located in North Carolina. I'm buying it through FCI Exchanges system, fyi. Seller has provided me the majority of the collateral files and I found that the address listed on the original note, DOT and subsequent assignments/allonges are incorrect. The parcel description is correct but the street address is 8 numbers off.

I called the county and they realized that they had the wrong street address listed in the records and have subsequently corrected this, but I'm looking for some guidance on what is the best process to have the title corrected to the the right address, should I ever have to foreclose. Any input is appreciated.

Bob

[Dion DePaoli]

Bob was close with the spelling, it's "Scrivener's".

If the legal description in the security instrument (mortgage/dot) and title policy are correct that will be most of what matters. The Legal Description is how the real property is indexed within the county, it is static and it needs to be correct otherwise you have attached to the wrong property. (street addresses get messed up often)

If the street address is wrong and the legal address is correct, you most likely have nothing to really do. You could file an affidavit and attach it to the Subject Property to establish and cure the error. Street address are structured to be amendable. If you recall several years back as many cities built out their 911 call centers many cities had to redo their address systems to account for easier deployment of public services. All in all, street error is not really that big of a deal.

You should have pulled a report on the history of the real property title. That report should also index via the Legal Description and as such, it should show your instrument as a lien along with all intervening assignments. Those all line up based on the legal address as an index not the street address as a reference/location aide. You then would want to make sure the Warranty Deed (or similar) also contains the proper legal description back to the last conveyance. In other words, go back to the last sale and make sure its the right legal and property too. This ensures that what was given as collateral could be given and was given.

If there are errors with the legal description, then you would have to do a similar affidavit which is formally called a Scrivener's Affidavit which can be used to correct the typographical errors. Alternatively, you can usually cure this error in judicial proceedings. An error like that would most like cause a non-judicial preceding to become judicial depending on the state.

A Seller may not be interested in dealing with a Street Address error, as I mentioned they are not uncommon. The instrument is secured according to the legal address (description) and if it matches through all instruments and time, you have an enforceable instrument. I would imagine they will tell you to fix it when you own it yourself. Any real estate attorney can help you with it.