Bank questioning past deed

[OceanSun]

Jurisdiction

Florida

I'm asking this on behalf of my mother and her cousin who are both elderly, and about to have a figurative heart attack over this.

The cousin inherited a house, and then sold it to Mom in 2012. When they wrote up the deed, they left out some part of the property description by mistake. In the mean time, Mom used the house as a rental property, and then in 2020 sold the house. Those owners are now in foreclosure, and the bank (or I guess I should say their lawyers) have named Mom and her cousin as defendants, however, they are not being sued for the foreclosure. What they are saying is that the deed causes them uncertainty as to whether or not they would be able to get a proper deed after the foreclosure, and so they are asking the court to enter a judgment that the deed between Mom and her cousin be considered legally standing. Then when the house was sold to the current owners, they are saying the uncertainty thing again, stating that the deed did not state the martial status of the new owners, and again, asking a judgment be entered that the deed from Mom to the current owners be considered legally standing.

So, the questions are: The first sale was done 13 years ago. Wouldn't there be a statute of limitations in play here? Secondly, the bank is not suing Mom or her cousin for money, only that the deeds be considered good. So, if they did nothing and just let that get entered, is there anything that could harm them later in all of this? And if it really came down to it, couldn't they argue that the bank issued the mortgage with those deeds as they were and didn't question them then?

 

[army judge]

So, the questions are: The first sale was done 13 years ago. Wouldn't there be a statute of limitations in play here? Secondly, the bank is not suing Mom or her cousin for money, only that the deeds be considered good. So, if they did nothing and just let that get entered, is there anything that could harm them later in all of this? And if it really came down to it, couldn't they argue that the bank issued the mortgage with those deeds as they were and didn't question them then?

 

[adjusterjack]

Wouldn't there be a statute of limitations in play here?

I wouldn't think so. It could happen 100 years from now and still need a court ruling. I'm guessing that there is a title company that won't issue a title insurance policy without clarification.

Did Mom and Cousin get title insurance when the transactions occurred? I'm guessing not.

Mom and Cousin are named as Defendants in a lawsuit. That's all it should take to require the services of an attorney.

 

[zddoodah]

and then sold it to Mom in 2012. When they wrote up the deed, they left out some part of the property description by mistake.

When was this mistake discovered?

So, the questions are: The first sale was done 13 years ago. Wouldn't there be a statute of limitations in play here?

I don't understand the question in the context. There is no statute of limitations that is relevant to the current foreclosure suit.

Secondly, the bank is not suing Mom or her cousin for money, only that the deeds be considered good. So, if they did nothing and just let that get entered, is there anything that could harm them later in all of this?

Highly unlikely.

And if it really came down to it, couldn't they argue that the bank issued the mortgage with those deeds as they were and didn't question them then?

I don't really understand the first eight words of this sentence. For what purpose do you think they would make this argument?

Your mother and cousin no longer have any interest in the property. Correct? They certainly can consult with a local attorney, but the smartest thing to do might be to contact the bank's attorney and tell him/her that they have no interest in the property or outcome and would stipulate to such as long as there is no monetary liability for them. My company finds itself in this sort of situation from time to time, and that's what we typically do.