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Lien showing on property, from mortgage that we never had

Pompano Beach, FL |

We are selling a home in NJ and closing is set for Feb 28. A title search was already done and came up with a mortgage for $50K from 1984, from a bank that has long been out of business. We never had this mortgage, so can not show anything regarding it...We have had mortgages since then, obviously we never would have been approved if this in fact was correct, and in addition it has never been on a credit report, nor any county documents, it is clearly an error. We just found this out and have not had time to talk to anyone about this-specifically the title company and we are stumped. Any advice? How do we correct this if the bank is closed and it was not ours?

Attorney Answers 3

  1. Statute of limitations to collect has run. Have title company or your attorney prepare an affidavit to record at closing. Very easy. Don't sweat it

  2. Title searches show up everything that has ever been filed against a property - the good, bad and ugly. It won't reveal whether or not any of the encumbrances are real, false or expired. As Attorney Salcines has pointed out - the Statute of Limitations for this has run and it shouldn't create an issue. Title companies are not attorneys so they report on everything without evaluating it first. Contact a local attorney (or Ms. Salcines) and see if she can draft the suggested affidavit.

    Carol Johnson Law Firm, P.A. : (727) 647-6645 : : Wills, Trusts, Real Property, Probate, Special Needs: Information provided here is anecdotal and should not be relied upon or considered legal advice. Every matter is different and answers given here are general in nature and may not reflect current Florida law at the time you are reading this posting. Please contact me if you feel you need additional assistance with your matter.

  3. When you stated that this is a "mortgage you never had" are you saying that the mortgage instrument that is recorded was never executed by you? If that is the case, then the firstthing you should do is contact the local District Attorney, and alos note as to who the Notary Public is on the mortgage instrument who acknowledged the signatures thereon that are purported to be yours. Remember, fraud is fraud.

    Also, your recitals above are contradictory. If a title search discloses the existence of this mortgage, then it is of record with the County because this is the locale where title companies search. You then stated that it is not of record with the County. One of these statements must be incorrect.

    Also, I strongly doubt that, irrespective of the above, and in any case, the statute of limitations has run, or for that matter, any title company would "insure over" this mortgage as being an "ancient mortgage". Very, very unlikely.

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