Seller Did Not Pay Off First Mortgage After Sale
Just curious,
What happens in a situation where, at closing, the seller walks away with a check and literally walks away without paying off his existing liens. Now you have a loan/lien and the existing loan/lien is still on the property?
If a title search was done thereby revealing the liens, then that shouldn't and to my knowledge will not happen.
Use a title company for the closing. They will make sure all leins are paid and only give a check for the amount THEY are due at the closing.
Need more info to give the answer you are looking for.
Telemon is right on. Use a title company and ALWAYS order title insurance. When you close using a title company, they make sure all liens are paid of and distribute the funds accordingly. If a lien pops up later and you did indeed have title insurance, it's their responsibilty to clear up the title, not yours.
Good luck !
Jason
I was just wondering because I was just at a closing where the owners walked away with a huge check and the burden was on him to pay off and ensure cancellation of the first lien. Just wanted to know what would happen if he had hopped a flight the the virgin islands and never looked back.
I don't wory about it.
I always buy title insurance for a small fee they have to worry about it.