2nd Lien Not Recorded?
Hi there,
Question about valid liens. Trying to buy sub-to.
Second lienholder is Ocgen via assigment, and they have not recorded the lien or assigment. Original second is released. Ocgen not listed in title search or any Court docs.
I called them and they said the account was "charged off."
Can I buy sub-to first, get title insurance, with homeowner's understanding that second will not be paid?
Thanks,
Christina
Hi Christina,
If the lien is not recorded against the property and does not turn up on a title search, it is not a lien against that property.
I bought a fixer from a guy once who thought he had a mortgage on the house for 8k. The title search turned up a free and clear property. Seems the loan was a signature loan, not a 1st mortgage at all. I could have never paid a dime on it and the bank would have had no recourse at all except against my seller's credit. I paid the debt of course because I gave my word but you see how this could have gone.
Of course if the sellers think it is a part of the debt that you will be paying, you must disclose to them that you will not be paying it if that is your intent. It is the only right thing to do.
WilliamGA
William Tingle