In order for a lending institution to successfully take real estate through foreclosure litigation and have the real estate sold at a sheriff sale, the property needs to have a clear title. What many do not understand is that small details in the chain of titles can cause major issues down the road, especially when it is time for the sheriff to sell the property.
Many issues that present themselves are:
- Clouds in title
- Senior mortgages that were never satisfied or released
- Questions on ownership
- Questions on parcel mortgaged
- Assessment and parcel changes over the years
- And issues with mobile homes
This is just a short list of issues that can present themselves in title that need to be rectified before a foreclosure can proceed to sale.
Although title issues present challenges in real estate, specifically foreclosure litigation, those challenges do not need to stop the foreclosure activity.
