The HOA had a Miami-Dade online foreclosure sale. I won the bid and received the Certificate of Title.
I had researched the public records. Seven months later a Bank served, at the unit, foreclosure papers against the prior owner. The mortgage had been incorrectly indexed with the mispelled name of the borrower. The Bank should have made sure that the mortgage had been recorded properly.
Is it a Quiet Title Action the proper procedure?
The on-line ability to attend foreclosure sales has enticed many people to become investors in these distressed properties. However, you have stepped into one of the many pitfalls. Most likely, the mortgage is still valid. If you have any defense, it will likely be for some other reason. The main way any interest in property is "indexed" is based on the property description, not on the name of the mortgagor (i.e. the borrower). Almost certainly, anyone properly trained in title examination would have found that the bank had a superior interest. Even if you have title insurance, it most likely excepts the superior interest of the mortgagee bank. You really need to take this to an attorney for review and evaluation.
The law is complicated and although the facts expressed may seem to be all that is relevant, there may be many other important facts to consider. Also, the law is constantly undergoing change, so what may be correct today, may not be accurate tomorrow. Only a full consultation with an attorney experienced or knowledgeable in the specific legal subject matter is likely to result in the optimal course of action. My practice has entailed more than a 30 year span of many real estate issues. Find out more about me at: FloridaPropertyLitigation.com.
The improper indexing of the mortgage does not necessarily mean that the bank loses its right to foreclose its mortgage. If you purchased title insurance at the time you purchased the unit, you should make a claim under your title insurance policy. If you do not have title insurance, you should consult a lawyer experienced in foreclosure defense to advise you on the best way to proceed.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
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