Is it possible to buy someones defaulted loan clouding deed?

Question

As backstory, I am looking into a property in Texas. The property is being offered as a "resale" and has been on the books as such since 2011. Before the county foreclosed on the property the previous owner took out some sort of loan on the property (morgtage, re fi, or house as collateral). I need to take another look. This loan was defaulted on over 10 years ago. I'm trying to figure out if I could purchase this dept at a discounted rate (since its so old) as a step to releasing there claim to the title.

Very new to this but but I'm finding this all very interesting an I am super thankful for any all replies!

Account Closed · Answer

@Robert Johnson

Too little information. It isn't normal for a loan to have been in default for ten years.

It is possible that the deed has not been recorded properly or was in default but was corrected and the information didn't get properly updated. Normally a lender will pay a tax lien prior to the sale.

The only way to get started on this is to have a Title search done by a Title company. That will tell the story. Where it goes from there depends on what you find.

Robert Johnson · Answer

Also. I never actually saw a county tax lien, the fed liens seem to be concerning income.

Robert Johnson · Answer

So, Question. If there was a warranty deed issued in 2001 does that make everything before that time no cause for concern?

Robert Johnson · Answer

My digging in county resulted in a timeline like this.

1973 Deed w\ Deed of trust (Trust settled 3/77)

Cowboy Family to Pioneer Family

lot 5, and 6. Paid 16.5k

1973 Mechanics and materialmens lien (lien settled 2/77)

From Pioneer to Oil Tycoon

1974 Three Fed Liens (liens settled between 75'-76')

Feds to Pioneer Family

1977 Deed ( partial sale)

Lot 6 to The Gullettes

1977 Mechanic Lien/ Trust ****

From Homsteaders to James Peel, Thom Olizer, First National. 7k

1977 Mechanic Lien (release 1/82)

Pioneer to N. B.

1980 Mechanic Lien (release 1/82)

Owner x to Pioneer

1982 Mechanic Lien

Pioneer to James ***

1982 Fed TaX Lien  (release 10/87) **verify

Pioneer 2.6k

1982 State Tax Lein*

""

1983 Fed Lien*  (release 10/87)

1984

Fed Tax 1 1k*

Fed tax 2 800*

Fed tax 3 612*

1984 Abstract of Judgement State of Texas 600*

1984 Oil and Gas lease

(no drilling on site clause)

1990 Trustee Deed via Mechanic Lein

Property from Homsteaders to James Dailey purchased by Stacy Owner x

2001 Warranty Deed

Deed from D. M. Owner x on Behalf of Stacy Owner x estate to R and B Dodger

2003 Deed of Trust

Dodger Family take mortgage from Beneficial Texas Inc 25k (released 12/09)

04 State tax lien 170

09 County Destroys Building - Mowing Lien

Demo of building 10k

mow lien 1.1k

09/09 mowing lien 75

12/09 Mortgae Company Releases claim without warranty to county

6/2/11 County Forcloses

8/11 Fed tax Release

Robert Johnson · Answer

Thanks Ken,

I will get that title search done before I submit a bid for the "struck off" land lot since this is my first one and the length of time it's been on the book seems irregular.

Right now I'm trying to do a title search through the county's website  before i go to see a title company. If I miss something then I'll know for sure this is something I should let them do. Do the title companies have access to things that are not public record? Do they interpret the documents for you?

Howard Marcalle · Answer

Hi Robert. Usually, that is how it works. The tax lien will wipe out all other liens including first mortgage.

Some counties might keep the water bill on the property other will not.

Code violations is another thing to look at.

Howard Marcalle

Robert Johnson · Answer

I did alot of reading last night and I  think it's cleared up some of my confusion about buying from a tax sale. From what I'v gathered, in texas, you are buying a tax deed. The mortgage will be wiped out as a result of the higher priority tax lein foreclosing (I would like to know how that is recorded in the public records)??? The mortgage/loan may still be on the previous land owner's credit but the bank no longer has claim to the property.

I am going to look over the documents I've gather tonight and compile a story of the property and post it here.

Robert Johnson · Answer

Thanks Ken,

I will get that title search done before I submit a bid for the "struck off" land lot since this is my first one and the length of time it's been on the book seems irregular.

Right now I'm trying to do a title search through the county's website  before i go to see a title company. If I miss something then I'll know for sure this is something I should let them do. Do the title companies have access to things that are not public record? Do they interpret the documents for you?

Is it possible to buy someones defaulted loan clouding deed?

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