Foreclosure in Orlando>Question Details

Veronica Mar…, Both Buyer and Seller in Orlando, FL

Bought a HOA foreclosure. Title search shows a lis pendens from Bank of Amer 2009. Then drop notice on 1/11. Can I have it removed, is title clouded?

Asked by Veronica Martin, Orlando, FL Tue Jul 5, 2011

Am I responsible for this loan from the previous owner? Will title insurance protect the title, from future judments from past liens from the previous owner?
P.S. Please only ones that know the laws, and I dont want to be referred to someone unless I know why and really need the legal advice. I have already talked to my title company and they said the past liens from a former owner is devoid after forclosure. I have also looked at some of the foreclosure florida statutes and I dont see anything that says I am liable. Through my research I have also learned that if I get title insurance this may protect the title for future past owner liens coming up. Can I have honest opinions here please.

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7
If you are concerned about potential clouds on your title, then you're not going to get any useful help in this forum. I have not seen any lawyers answering questions here and they are the only ones that "know the laws". I'm with Ron, something is not right here.
1 vote Thank Flag Link Thu Jul 28, 2011
You bought the Foreclosure, it has gone through Escrow, yet the Lien still appears: CORRECT?
I'm ready to say that is not possible; if the Forclosure didn't remove the Lien, the Title Company would have; that is why you paid for Title Insurance.
You have asked the ultimate authority here; the Title Company, and you are not satisfied.
Something is not right here.

It sounds like you haven't bought this yet, and you do not believe anyone about what is going to hapen.

Good luck and may God bless
1 vote Thank Flag Link Fri Jul 15, 2011
First of all, I always encourage homebuyers to get title insurance for both the bank and a personal policy for themselves.

Are you in the process of buying this house, or have you already purchased? As a rule, BOA is supposed to give you clear title as part of the transaction - essentially making sure past liens are satisfied and if it was not properly recorded, making sure this is corrected prior to closing.

As part of the issuance of title insurance, the insuring company will check for clouds on title as they don't want to be liable for them after closing. So having title insurance is two fold. It cleans up the title prior to closing while protecting you from future title issues that might've been missed. Most title problems are procedural issues that can be cleaned up by an attorney or title company. However the title insurance would pay for the fixes.
1 vote Thank Flag Link Tue Jul 5, 2011
I like Ron's answer on this one, you have to have clean title or it can't/shouldn't close.\
VP
0 votes Thank Flag Link Fri May 3, 2013
If you bought an HOA foreclosure in Florida you did not pay title Ins,. It is a buyer beware State and I would assume most other states for foreclosures. You do not pay for title ins,. until you sell the property which you can not do with a mortgage lien on it. It does not matter if the Lis Pendis was released, the mortgage is still attached to the property. However, you will not be liable to pay that mortgage because your name is not on that mortgage. The only recourse the lender has against you is to take the property, which they will do. You must be careful with HOA Auctions. They are very tricky unless you are an experienced investor. These auctions get bid up on without the buyers knowing there are liens on the property that the auction does not wipe out. You must do a full title search before you bid on these properties.
0 votes Thank Flag Link Wed Mar 6, 2013
Were you able to get a statisfactory answer on this issue? I'd like to answer your question but there are other factors that I'd need to clarify beforehand. The quickest way to see what you are or are not covered against would be to look at the schedule B of your Owner Title insurance Policy. Items listed in that section will tell you the "exceptions" to your policy.

If you still have questions feel free to call or email me.
Nancy Licari
Park Place Title, Inc.
407.897.6999 / nancy@parkplacetitleinc.com
0 votes Thank Flag Link Wed Aug 3, 2011
For just a few shekels, you an have a title search done by a title company. If you are about to spend any money on this house, Better spend that hundrd dollars first. I would seem unlikely that the Bank of America loan was an inferior loan therefore it would NOT be void.
Put the house up for sale. You will find out fast enough if you have a clear title. Close that sale at the title company that told you the title is clear. http://www.climerrealestateschool.com
0 votes Thank Flag Link Fri Jul 15, 2011
To everyone who has no experience with HOA Foreclosures.... The title is NOT clear. The property was purchased at auction and did not close through a title company. The buyer only purchased the rights to the property temporarily. BOA is still the primary mortgage and will need to foreclose on the original loan holder. When they do they will assume ownership of the house back from Veronica. While the BOA foreclose will not hurt Veronica's credit or leave her will a bill to pay, it does take the home back. Buying an HOA foreclosure is like leasing a car and not really knowing when you're going to have to give it back.
Flag Wed Oct 16, 2013
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