Open Lien on previous seller account with a bank no longer in business

D

Doshi

Guest
Jurisdiction
New York
I tracked back 30 years of past history for the property I owned. There were 9 sales transactions in the past, and I will be the 10th seller. Recent title search on the property revealed an open Lien of 25K on this property from seller #7.

In year 1996, a mortgage of 25K on this property was transferred from Mid Island Equities Corp. to First National Bank of Keystone. This relates to seller # 7 and still shows open in recent title search report. I tried to contact the attorney many times who represented me on my buying. I sent emails/fax/phone call, but there's no response. The only response is from the attorney's secretary who replied, it is a very old transaction, and they don't have any record. Attorney himself is not coming over the phone.

I did a detailed research on the property and on the recent title search report that revealed 25K Lien. Below are my findings:

1. 25K of open Lien is coming over from seller # 7 seller who sold this property in 2000.

2. This Lien relates to The First National Bank of Keystone.

3. On OCC finding of banks fraud, FDIC issued a press release dated 09-01-99, closing The First National Bank of Keystone, West Virginia, effective 09-01-99 by the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) was named receiver.

My questions:

1. How has this property been passing the clean title criteria until seller # 9th sales transaction, and why is it obstructing the sales for the seller # 10?

2. What recourse do I have with the attorney that represented me when I bought this property in 2007? Is he not obligated to me to clarify the title search finding? I paid him for the job and to act on my behalf. Is it not a Breach ofFiduciary Duty?

3. As per FDIC press release, The National Bank of Keystone closed almost 18 years ago. I can't see any means to communicate with this bank to find if there is still an actual open Lien on this property, or if the Lien is closed but the record simply isn't updated. I came to know from my real estate agent who is representing me in this sale that this happens sometimes when the attorney does not complete their work. Under these circumstances, can this property pass a clean title in the 10th selling process?

Any suggestion on this would be great help.

Thanks
Raj
 
Any suggestion on this would be great help.

Thanks
Raj


Hire a real estate lawyer to investigate the property's title and deed.

Some title guarantee agencies MIGHT be able to assist you for a fee in some states.
I don't know if yours is one of those states, but you can ask and find out.

Frankly, if a property appears to be troubled, as a former investor in real estate that's a red flag to me.

The smart play is to simply walk away.

Why?

There are too many fish in the sea of real estate to obsess over one.
 
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