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    spillmar's Avatar
    spillmar Posts: 4, Reputation: 1
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    #1

    Jan 31, 2010, 07:50 PM
    Purchase agreement - contract
    I was hoping someone could help. My parents sold a home in 2000 by which the buyer assumed a mortgage and issued a promissory note for $9000 to my parents. The terms of the note was that when they sold the home they would repay the note plus any accrued interest. Last year the buyer carrying the note sold the home but did not pay the $9000 plus interest as agreed. Title changed over to the new buyer with no reflection of the note that was attached to the property. Somehow the note was not repaid from proceeds of the sale. What recourses are there? Is this a case against the title insurance carrier or is this now a civil claim against the original buyer who made a substantial profit but did not repay the note. Please help.
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #2

    Jan 31, 2010, 07:53 PM

    If there was a record on the deed then the title company should have paid out BEFORE the title changed hands. Did you make sure that it was recorded as a debt or second mortgage against the title ?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jan 31, 2010, 07:58 PM

    That's the key, whether the note was recorded against the deed. If it wasn't then the seller could hide it.

    If the lien was recorded, then you can sue the seller AND the title company. If not you can only sue the seller.

    You may be able to apply the lien to the property at this point, in which case the current owner has to go to their title insurer.
    spillmar's Avatar
    spillmar Posts: 4, Reputation: 1
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    #4

    Jan 31, 2010, 10:50 PM
    Quote Originally Posted by califdadof3 View Post
    If there was a record on the deed then the title company should have paid out BEFORE the title changed hands. Did you make sure that it was recorded as a debt or second mortage against the title ?
    I checked the copy of the indenture listed as a purchase money second mortgage and it shows as recorded and verified. It is also notarized with county clerk seals.

    Does this mean the title insurance company failed and should not have allowed transfer of title without notification or payment of the note?

    Thanks for your replies
    spillmar's Avatar
    spillmar Posts: 4, Reputation: 1
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    #5

    Jan 31, 2010, 10:51 PM
    Quote Originally Posted by ScottGem View Post
    That's the key, whether the note was recorded against the deed. If it wasn't then the seller could hide it.

    If the lien was recorded, then you can sue the seller AND the title company. If not you can only sue the seller.

    You may be able to apply the lien to the property at this point, in which case the current owner has to go to their title insurer.
    I checked the copy of the indenture listed as a purchase money second mortgage and it shows as recorded and verified. It is also notarized with county clerk seals.

    Does this mean the title insurance company failed and should not have allowed transfer of title without notification or payment of the note?

    Thanks for your replies
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #6

    Jan 31, 2010, 11:24 PM

    Yes it does. So you have a few people to sue.
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