I just bought a house in FL. Seller was having "family issues" and had to sell for loooow. Skeptical, I was assured that home wasnt in foreclosure. This is 1st time purchase so I don't know all steps involved. At closing I ask seller if his title was clear for the home and with the HOA. He says yes. So does the title company that I"m paying for.
I move in.
Last weekend a process server knock on my door looking for Seller. I tell him Seller doesnt live here anymore and he tells me this is related to foreclosure of Seller.
This is the 1st time that "foreclosure" is spoken in the realm of this house to my ears. I'm pizd! I haul to the courthouse and lo and behold....foreclosure proceedings against Seller for the house w/ a default judgment.
My title company should have found this out, right?
Now, what do I do? I don't know who to approach 1st- title company, foreclosing lender's attorney, my lender, etc.
any advice?

ebaines

Were you represented by an attorney at the closing? If so, I would start there. If not, then start with the Title Company - the whole point of title insurance is to cover this type of thing.

progunr

You need to talk to your attorney.

You did have an attorney, right?

twinkiedooter

Your title company is the one who goofed and didn't properly search the title to the home. They are to be held liable for this.

pacific nw

I'm puzzled. If you bought the house, your escrow agent had to get a payoff on the loan. The escrow officer would have been notified that the house was in foreclosure and any pending sale date.

At any rate, your new mortgage loan paid off the old loan that was in foreclosure. Probably; the foreclosure process was soo far along that the Trustee didn't get notification that the loan had been paid off before they had the servicing agent drop by. Really shouldn't be a problem if you did use an escrow agent.

excon

Hello pissed:

I dunno who you're mad at or why. The old owner was in forclosure. You bought the house. Now the house is NOT in forclosure. You own it. What's the problem?

excon

s_cianci

Wasn't a formal title search conducted prior to closing? I can't believe that a pending foreclosure would have been overlooked. Your best bet now is to consult with a real estate attorney or with the realtor who assisted you with the purchase.

progunr

Foreclosure is not her issue, it is the judgment on the property that she is in a pickle over.

As far as I know, that title won't be able to be transfered until the Judgment is paid.

If she did not have an attorney, she has a real mess to deal with.

Fr_Chuck

If you bought the property before there was a lien put on the home, they can not put one one the home. If they filed a lien prior to the sell, but they can not file a lien to foreclosue after it is sold.

But you need to get your real estate attorney invovled. and of course this is why you buy title insurnace which would have to pay to clear the title.

George_1950

Just curious: when did you purchase the home? You didn't have an attorney, did you? Most buyers don't.