Legal Question in Real Estate Law in

if this particular property was mortgaged, the borrower (the seller) had an obligation to disclose the charge/lien/mortgage to you. He did not disclose and therefore he has committed an offence of cheating. At the same time, you were also to check the title. Since the lien is on the property, it would be borrower (seller) liability but if you want to save the property you might end up paying for it and later recover from the seller. But you must very very very very cautiously check if the property was actually mortgaged. Must check very thoroughly the documents of mortgage. May be, now, these documents have been created in collusion to extract money from you. You must see an attorney to get fact and document based advice

as the property was mortgaged and was sold on unregistered power of attorney, your status is not good. still you may have to meet the lawyer in person with all the documents in your possession and a suit for declaration and injunction may be filed on your behalf.