The original owner is liable. The title company may be liable for missing it. The new owner would have to pay to keep from losing the house to foreclosure if it comes to that.
Did you contact the old owner and title company about this? What did they say?
You can also contact the new owner. They will be up in arms when they find out and be on the phone to their attorney. Their attorney will shake things up.
But if push comes to shove, you can start foreclosure proceedings and recover all your costs as well.
If the first and second was paid then your third becomes the new first and the new owners mortgage becomes the second behind yours.
Can I foreclose as first position on a Trust Deed that wasn’t paid when the house was sold?
The note was originally for $5000 as a 3rd position on a $200,000 house. My Trust Deed was recorded 10 days before the property was sold (closed at title company) to the new buyer. The new buyer’s are ‘innocent’ so I hope I can get the original owner and/or Title company to pay up. Is that how it works?
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I lent some money to Owner and got a Promissory Note and Trust Deed for it. Owner sold the house to Buyer (Buyer financed the house with a bank and closed with a title company). The title company didn’t see the Trust Deed (which was recorded) when the house closed and I wasn’t paid).
My question, who can I go after for the money? The original owner, the new buyer, the title company?