I am scheduled to close ona house in NH 9/30. Unfortunately the title search shows an undischarged mortgage from 1995. The title insurance company I am working with has agreed to provide us with a clean and marketable title and title insurance (so we can close ASAP) while they continue to resolve the issue.
My question is: should we close on the house even though they have not resolved the issue. They tell me I am covered with title insurance, however, my concer is if this can not or does not get resolved/recorded, will I have an issue selling in the future?
Thank you very much for your advice!
1 Answer from Attorneys
Unless the undischarged mortgage issue is resolved, it will affect marketability of title. Better lenders will not accept insured title with an undischarged mortgage on record. If it can be fixed then wait until you have good title (free of liens) instead of insurable. Buying property with defective title is a bad idea. Generally, the seller owes you good title for good money.