No recorded mortgage - Posted by Lydia

Posted by luke-NC on August 11, 2005 at 17:17:09:

I wouldnt try to work out a deal where the house is sold and NOT payoff the mortgage. They call that unjust enrichment and though it may not be a crime, its kinda unethical.

I’d work out a great deal though hopefully on the short sale and see what happens.

No recorded mortgage - Posted by Lydia

Posted by Lydia on August 11, 2005 at 24:26:10:

I have a seller who wants to sell me her house. She says it’s free and clear. Title company did search and found no current mortgage. Seller also says Mortgage company has an active account with her. She refinanced 5 years ago. Made some payments through chapter 13 bankruptcy, then filed chapter 7 which was discharged several months ago. Mortgage company hasn’t received a payment in 15 months or so, has not started foreclosure action and did not want her to do a deed-in-lieu. they suggested a short sale. She knows she won’t get money in a short sale but also knows that if the bank doesn’t have a recorded deed of trust, she might be able to get some money selling the house and bypassing the mortgage company. Would that be fraud, or would it be a case of getting a profitable deal done because someone didn’t do their job right?

Do title insurers have loopholes in situations like this? Have situations like this ever occured before? My title company has never heard of it. She wouldn’t say if I could get clear and insured title since I knew someone is claiming to have a mortgage, even though it isn’t recorded.

I’m really confused over what I should do. The bank knows I know about them—I have submitted a short sale offer. They don’t know I had a title search and they came up nowhere, even through various cross-referencing. I even talked to someone in the register of deeds office. He looked it up every which way he could and finally told me I should call the bank and ask what book and page it was recorded on.