Re: Foreclosure posted- No Liens Found@!!! - Posted by Jimbob
Posted by Jimbob on December 24, 1998 at 09:44:24:
It sounds like you had a “preliminary” title search done, have you and your attorney investigated a “full” title search? Often times, liens will show up on the full search but not the preliminary. If you find there are no liens on the full search and you take possession and title to the property and record it, you should be able to secure clear title, the old saying is “first in line, first in time” when it comes to recording liens. You will definitely want the title company to give you full title insurance on the property in case someone comes back and tries to record a lien on the property after you close.
Here’s where it gets interesting, if the bank did not record a lien to secure their interest in the property with the current seller, technically that seller may not owe anything on the property, however, if the seller signed a contractual agreement with the bank when he first bought the property, he would still owe the bank the money he borrowed to buy the house.
There may be certain laws in Texas that prevented the bank from recording a lien against the proeprty which is why they didn’t do it. But that matter is for the seller to worry about.
In any event, title insurance and recording on your part is critical.