Property Q&A in Toledo>Question Details

Mamacoffeys, Home Buyer in New York, NY

My husband & I purchased a home and we have a deed but has come to find out the seller has an 171 thousand dollar mortgage on the property , can

Asked by Mamacoffeys, New York, NY Wed Jan 16, 2013

we be put out on the streets

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5
Marcelo, you make a good point about "due on sale".

Even if it's the seller's "bad" for not paying off the mortgage at closing, I believe the lender's recourse still includes foreclosure of that mortgage, which means the new owners are the ones to lose the house.

Of course the lender could pursue the mortgagee (the original borrower), but the lender's most likely chance of recovery, or partial recovery, would probably be in foreclosing. Sad and unfortunate, but likely.

Seems like this sort of issue comes up a lot in those "kitchen table" closings, where no title search or other precautions are used.

I'm sure a whole can of worms can be found in this one!

But it goes to illustrate what both of us have suggested: get a lawyer involved!
0 votes Thank Flag Link Sun Jan 27, 2013
Usually , mortgage contracts have a "due on sale clause", which means the previous owner who sold you the home signed a commitment to pay back the money he/she borrowed when selling the property. Even though it seems the seller might be breaking some laws, it may not help you.
You should SEEK A LAWYER! Because you may be at risk to loose your home.
Only a lawyer will be able to offer you a true insight on your situation after checking all documentation.
If you can't afford one at the moment , go to your hometown city hall and ask for help!
0 votes Thank Flag Link Sun Jan 27, 2013
I'm assuming that the property is in Toledo being that you posted your question in the Toledo area of trulia.

The agents have given pretty good responses here, and I would suggest always using either an agent or an attorney (or both) when buying real estate, and always, always, always close through a title company.

Here's what it boils down to: if you have ownership of the property and the mortgage was not extinguished at closing AND there was no title guarantee, you're probably hosed.

You really need to talk with a lawyer at this point.
0 votes Thank Flag Link Sun Jan 20, 2013
I suggest you contact the title company that provided the closing when you purchased your home, and the sellers mortgage company should of been paid in full.
You may also want to seek the advice of a Real estate Attorney.
0 votes Thank Flag Link Thu Jan 17, 2013
Did you get a title company for closing? Did you buy title insurance? Start there and if you used an agent they should be able to let you know more for your area.
0 votes Thank Flag Link Wed Jan 16, 2013
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