Discharged Judgement Still on Title

[sashaannm]

What is the name of your state?What is the name of your state? FL

Hello All

I am buying a house from my aunt and uncle. The house is in FL and they now live in CT, and have lived there for about 7 years. Anyway, when my mortgage broker had the title search performed, a judgement came up on the title for a car they had back in '99. They filed bankruptcy in '00, and included this in the bankruptcy. They have their schedule A from the bankruptcy, which shows this judgement as being charged off. I was talking to my boss and he said that no matter what even if they DID file bk, that judgement would not come off of the title until it was actually paid?!?!?!?
My mortgage broker doesnt think that there is a problem, that she will just fax these bk papers to the title company as proof and everything will be okay.....Im so confused over this and dont know who or what to believe anymore. BTW, I have lived in this house ever since they moved up north, and am just paying their mortgage payments for them, so my mb wants to do this whole thing as a refi, with them signing a quit-claim. And they also just bought another house up in CT with no problems. Sorry, but one more thing. On the title search- 3 2nd mortgages showed up as open. Weird thing is, the mortgage company is no longer around, so how do we get those off? Any advice/comments will be extremely appreciated!!! Thanks

 

[Rhubarb297]

What is the name of your state?What is the name of your state? FL

Hello All

I am buying a house from my aunt and uncle. The house is in FL and they now live in CT, and have lived there for about 7 years. Anyway, when my mortgage broker had the title search performed, a judgement came up on the title for a car they had back in '99. They filed bankruptcy in '00, and included this in the bankruptcy. They have their schedule A from the bankruptcy, which shows this judgement as being charged off. I was talking to my boss and he said that no matter what even if they DID file bk, that judgement would not come off of the title until it was actually paid?!?!?!?
My mortgage broker doesnt think that there is a problem, that she will just fax these bk papers to the title company as proof and everything will be okay.....Im so confused over this and dont know who or what to believe anymore. BTW, I have lived in this house ever since they moved up north, and am just paying their mortgage payments for them, so my mb wants to do this whole thing as a refi, with them signing a quit-claim. And they also just bought another house up in CT with no problems. Sorry, but one more thing. On the title search- 3 2nd mortgages showed up as open. Weird thing is, the mortgage company is no longer around, so how do we get those off? Any advice/comments will be extremely appreciated!!! Thanks

Your questions.

1) Regarding the BK, just fax off the BK papers to the title company. If the judgment is on the BK then it will be cleared off the title committment. This comes up a lot with title companies. They'll understand.

2) Regarding the issue of doing it as a refinance, I would doubt it but the broker could be right...it's more his area than mine. Typically you have to have some type of ownership interest in the property before a mortgage you take out is deemed a refinance. You could assume the mortgage if the terms of the mortgage allowed you and the mortgagee went along (if the mortgage company has the right to approve the assumption.

By the way, just paying someone's mortgage is never a good idea. You're paying their bills and getting no ownership benefits, no equity.

3) Regarding open mortgages, that's not unusual either. Paper gets passed around so much now that companies often fail to properly release mortgages. Lenders and title companies are experts at knowing how to deal with these issues. I doubt you'll have to worry about them at all.