Attorney Says Seller Cant Sell - Unreleased Deed & Mort Co Gone!

[Burt L.]

I've been working with the seller for a long time and she is now ready to sell. I had an O & E run and it shows a DOT and a mortgage of $56,000 borrowed 33 years ago. The owner received the property in a divorce ten years ago.

Her attorney says it cant be sold unless the mortgage company - a Richard Gill Mortgage Company located in Texas, releases the deed on this Colorado house. The only way is that if I take it subject to the potential debt and the title company cant issue title insurance with the note being released.  Seller assures me the 30 year mortgage was paid off 10 years early.

The Richard Gill Mortgage Company seems to have disappeared and there aren't any assignments of the note. Is this a dead deal now, or is there an alternative way around this? Thanks for any input - I seem to have hit the end of the road on a long deal.

[Sharon Vornholt]

Burt - I would put the property under contract, and send it over to the closing attorney. You can't close until the title issues are resolved.  That's why god made attorneys. Let them fix the mess.

That should come out of the seller's proceeds since it is their mess.