Recently I purchase a property at the courthouse that I was the deptor for. The property was involve in fraud without my concent. As a result, I decided to buy the property to satisfy the junior liens and extinguish the junior ones. Now the property is undercontract and the title insurance company won't insured the property base on the fact that they believe that I should pay for the junior liens.

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Originally Posted by ANGELIZ1

recently I purchase a property at the courthouse that I was the deptor for. The property was involve in fraud without my concent. As a result, I decided to buy the property to satisfy the junior liens and extinguish the junior ones. Now the property is undercontract and the title insurance company won't insured the property base on the fact that they believe that I should pay for the junior liens.

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As I understand it: you owned property, it was involved in fraud (you had no knowledge of the fraud); the property was seized (in my area that translates to drugs); you purchased the property at auction rather than take another means to regain ownership; now the title insurance company won't insure the title because they don't believe you. Title companies usually have the same opinions, rules, do the same research and come up with the same answers.

What is your question?

Yes, I was surprised you were allowed to bid on it, in the states I live and have bought properties, the owner of the proper is not allowed to be a bidder on the property..

You will need a real estate attoreny anyway, there will have to be a full title search done, and any ( not just yours) but any possible issue with the title ( deed) will be addressed at the quiet title hearing.

At the point all parties to the hearing will be notified and all can present their evidence as to why it should be cleared or why it should not be cleared.

Also by some states laws, there are some liens that are not satisfied at auction so depending on their type and your state.

I live in Georgia as well. The fraud was not related to drug. The property was sold to a second party with out paying my 1st and 2nd mortgage. The property was overleverage and I had no choice but to foreclouse on the property. Then proceeded to buy it at the steps.

I have to laugh GA is one of the few places I have not bought houses at the court house step, but I did not believe owners where allowed to bid here.

If the second party bought the home ( and you did not pay 1st or 2nd at that time) is the other liens on the property placed there by that buyer to cover their loses

So I still need to know whose other liens are the ones being challenged.
I understand that the 1st and 2nd would have cleared at sale normally but in GA, a lot of the other liens do not clear at foreclosure, tax liens don't for one, mecahnic liens don't ( I beleive) and a few others.
I have went to some of the Cobb county and Fulton county sales, but they are still crazy on the prices, I can still let them go to the bank and then buy them for less normally from the bank who gets it normally for the 1st mortgage price. ( or lately merely helping others by ** real estate)

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Originally Posted by ANGELIZ1

I live in Georgia as well. The fraud was not related to drug. The property was sold to a second party with out paying my 1st and 2nd mortgage. The property was overleverage and I had no choice but to foreclouse on the property. Then proceeded to buy it at the steps.

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What was the fraud? I don't understand why, if you had no knowledge of any of this, they foreclosed instead of getting it straightened out. How were you responsible for the sale or mortgages if you had no knowledge?

Anyway - the Title Company doesn't want part of this and I would guess a second and third company will take the same position - they do the same research.

I'm not sure - was that your question?