Legal Question in Real Estate Law in Maryland
If a previous owner of a property that went through foreclosure owes a total of $146,450.09 on a loan or mortgage, is that debt in any way transferrable to the present owner of the property? The present owner of the property bought title insurance on the property and the above debt may have gotten "overlooked" in the title search process to make sure there were no debts on the property.
The previous owner is long gone.
1 Answer from Attorneys
A foreclosure action should wipe out the lien of the foreclosing lender and any subsequent or junior lien. Note however that a few exceptions exist and some debt can carry past a foreclosure -- for instance certain liens imposed by the federal gov't will continue after a foreclosure. Because an attorney cannot tell the priority of a foreclosing lienholder or what other liens may exist without looking at the paperwork anyone buying a foreclosure property would be well advised to have attorney review.
I hope this answer helps but please note it is not intended as specific legal advice.
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