I am trying to sell my home and my buyers title company has encountered the following:
A preliminary review of title has been done and there is a problem with an old mortgage which may not have been satisfied. The Fund will not allow me to close until this issue is resolved either by providing me with a payoff estoppels or with a satisfaction of mortgage.
The mortgage, given by one of the prior owners in the chain of title, to the SBA was recorded on 12/2/1992 in O.R. Book 15730, Page 3764 (30 year mortgage). There appears a “cancellation of mortgage” dated 12/21/1993 but not recorded until 5/2/1994 (This appears in O.R. Book 16342, Page 3334). Then 8 years later an assignment of mortgage appears for this very same mortgage from SBA to MERS. The assignment is recorded 03/27/2002 in O.R. Book 20291, Page 4022.
I contacted the owner of my home during this time and she has said the title is clear and there should be no issues.
What can I do to get this cleared right away?
2 Answers from Attorneys
Get copies of the cancellation and the assignment and then contact the parties to the assignment to find out why they filed it.
It sounds like the issue occurred with the owner of the home prior to you. If so, and you purchased title insurance when you purchased the home; contact your title insurance company to resolve.