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  1. #1
    Join Date
    Jan 2009
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    2

    Default Liens, Forclosure, and Quitclaim Deed

    My question involves real estate located in the State of: Maine

    In 2004 I had a building quit-claimed to me from the municipality. At that time my father had owned the building and the City had forclosed on the property due to delinquent property taxes. (This is a commercial, multi-family)

    It is my understanding that a municipal tax foreclosure causes the deed to be cleared of mortgages and other liens, as these lien holders were also responsible for the property taxes should the owner default. Is this true?

    If so, how does one go about releasing such mortgages from the title?

    I have had two different real estate attorneys attempt to contact the first mortgage holder and we have had no response in 2 years. I believe the company may have gone belly up but I am not sure of this.

    If you have any questions please ask and I will answer them to the best of my ability.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
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    1,404

    Default Re: Liens, Forclosure, and Quitclaim Deed

    Quote Quoting Corelli
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    My question involves real estate located in the State of: Maine

    In 2004 I had a building quit-claimed to me from the municipality. At that time my father had owned the building and the City had forclosed on the property due to delinquent property taxes. (This is a commercial, multi-family)

    It is my understanding that a municipal tax foreclosure causes the deed to be cleared of mortgages and other liens, as these lien holders were also responsible for the property taxes should the owner default. Is this true?

    If so, how does one go about releasing such mortgages from the title?

    I have had two different real estate attorneys attempt to contact the first mortgage holder and we have had no response in 2 years. I believe the company may have gone belly up but I am not sure of this.

    If you have any questions please ask and I will answer them to the best of my ability.
    This sounds like to me that they quit claimed the property back to you before the time lines and the tax lien was complete.

    If the full time ran out then anyone could have purchased this property at auction at which time the time period would have been exhausted and the mortgage cleared.

    However, since this was a quit claim back to you, I do not see that the mortgage would be eliminated at this point.

    As far as the outstanding mortgage. If you have proof of payment in full of the mortgage and the lender can not be located, you can file in state court to have the mortgage discharged and probably win.

    If you just want to have the mortgage discharged and you do not have proof of payment then you can not have the loan discharged.

    However, if the mortgage matured, meaning, if the loan was due to be paid off in lets say 2005, and 3 years have passed, you may then file in supreme court that the mortgage should be discharged since 3 years have passed since the loans final payment date is now 3 years old and the lender can not be located.

  3. #3
    Join Date
    Jan 2009
    Posts
    2

    Default Re: Liens, Forclosure, and Quitclaim Deed

    The municipal tax lien DID go into full automatic foreclosure (in this state, you have one year of a lien, and then 18 months of foreclosure and then it completely matures)

    It's a fairly small town and we were given an opportunity to pay off the taxes and get the property back.

    I am wondering if I can get the municipality to remove the other liens and mortgage? Who is responsible for ensuring the discharge takes place under these circumstance?

    The mortgage matured last spring. And to reiterate, we haven't been able to get any response from the lender.

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Liens, Forclosure, and Quitclaim Deed

    Quote Quoting Corelli
    View Post
    The municipal tax lien DID go into full automatic foreclosure (in this state, you have one year of a lien, and then 18 months of foreclosure and then it completely matures)

    It's a fairly small town and we were given an opportunity to pay off the taxes and get the property back.

    I am wondering if I can get the municipality to remove the other liens and mortgage? Who is responsible for ensuring the discharge takes place under these circumstance?

    The mortgage matured last spring. And to reiterate, we haven't been able to get any response from the lender.

    The taxing authority is not going to do that for you. State supreme court order would be needed for a mortgage to be removed from record.

    You would need proof that the mortgage has been paid or that the mortgage maturity date is long past.

    Your best bet for right now is to contact a title company in your area, tell them your situation and see if they are willing to file this in court for you for a fee. A title company is usually owned by a lawyer.

    They may be willing to do this for you for a reduced fee. I do not see how you can do this any other way.

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