All Forum Posts by: Account Closed

When I think about it, that is my fear for this one as well, since it appears that everything from the mortgage forward has the incorrect legal description. The original owner had a deed with the correct legal description, but a mortgage on a property with a legal description different from that contained on the deed. We live in a small enough area that I may talk to the court clerk who handles mortgage foreclosures, just to get an idea of how long this is going to take to fix. I am fearful that they will have to amend the mortgage to contain the proper legal description of the property and re-do the entire foreclosure procedure with the correct legal description.

Thanks J Scott. Since this is our first investment property, I think we are just emotionally attached to this property.

We have not signed any extensions. So I think at this point, we will probably do nothing and if this thing drags out too long, ask to cancel the contract and ask for our earnest money back.

Thanks Ned. Just to clarify a bit, the title company says that they expect these issues to be cleared up in 1-3 months, but my gut tells me that this is being wildly optimistic. If we can't get the property for 6 months, we just want to bag the whole thing.

The concern about the property is that half of the aluminum siding has been stripped. It was that way when we purchased it. However, the wood beneath the siding is in pretty rough shape in a couple of areas -- rotting away. Additionally, a previous owner blew insulation in at some point and there are many exposed holes in the wood.

I was just wondering if anyone experienced the same title issues and how long they took to resolve. Second, if we wanted to get out of the HUD contract, what is the possibility of getting all of our earnest money back?

I like the idea of a quit claim deed :) but I don't know where the previous owner is or where they live. Even if I could find them, I don't know how I would approach that person without sound really creepy.

My wife and I are attempting to purchase our first investment property, which turned out to be a HUD foreclosure. Our offer was accepted and we paid our earnest money with the intention of closing within 45 days, as required by our contract.

After about 10 days, our real estate agent received the following email from the title agency:

"Please be advised that this search has a major issue. The legal description on the deed where the foreclosed party took title is correct. The legal description on the mortgage, foreclosure and sheriff's deed and deed to HUD however are all incorrect. The subdivision has been completely omitted from all documents."

While the title company thinks that the matter can be resolved in 1-3 months, frankly I am not so sure. We really wanted to take possession as soon as possible because we are fearful that the house will significantly deteriorate if exposed to the elements in its current condition -- particularly during the winter months.

Has anyone had experience with such and issue? Can we get out of the contract with our earnest money should this linger?

It seems to me that if the legal description contained on the deed to HUD is incorrect, then perhaps HUD never had the legal authority to sell the property in the first place.

I would love to hear if anyone else has had a similar experience, how it was resolved, and how long it took.

Thanks!