Warranty deed not recorded - Michigan

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Post Posted: Tue Jul 14, 2009 10:05 am    Post subject: Warranty deed not recorded - Michigan

We sold a house in Michigan in 2004. The new owners just attempted to refi and found out the warranty deed was not recorded. Neither they nor us have a copy of the warranty deed from 2004.

The title company who handled the transaction is bankrupt. The new owners just gave up on refi and are not fixing the title. The county recorder still lists us as the last filed warranty deed from our purchase in 2002.

There is a mortgage filed against the property in the new owners name. I called the company lsited as filing the mortgage, but they sold it shortly after they recorded it, and do not have a record to whom they sold it.

The new owner does not want to give me the name of their current lender (I figured their title insurance underwriter would take care of clearing title). Here are my questions:

1) Is there a way to find out who the current mortgage company is?
2) If the current owners default on the mortgage, can the property be foreclosed and do I have any liability?
3) What actions would you suggest I take.

Thank you in advance for your help
Icon Mini Profile Niicss

Joined: 03 Oct 2005

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Post Posted: Wed Jul 15, 2009 2:22 am    Post subject:

Hi colleenz

The new owner of the property will be the best person to tell you about the mortgage company. You can also go for a title search in order to know about the mortgage company. If the mortgage is not in your name, then the foreclosure will not effect you in any way.

The county recorder still lists us as the last filed warranty deed from our purchase in 2002.

If it is mentioned that you are the owner of the property, then you can sign a quitclaim deed in favor of the new owner and transfer the property to them.


Good is the Enemy of Great.


Post Posted: Wed Jul 15, 2009 7:47 am    Post subject:

The new owner is being flaky and does not want to tell me who their current mortgage holder is. The title search shows the name of the company that recorded the original mortgage. I called them, but they said they sold the loan the same year it was issued and have no records who it was sold to.

I was advised not to sign a quit claim deed because I could be liable for any liens against the property from the time that we sold it until the filing of the quit claim deed.

Can the bank foreclose on a house the borrower does not have title to?
Icon Mini Profile smithsussane

Joined: 18 Sep 2008

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Post Posted: Wed Jul 15, 2009 11:14 pm    Post subject:

Hi colleenz!

Welcome back to forums!

As there is a mortgage on the property, the lender can definitely foreclose it to recover the dues. The person whose name is on the mortgage documents will be liable to pay off the mortgage dues or any deficiency that results from the sale of the property.

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