Legal Question in Real Estate Law in New York

Re: Title report error

The issue is title, not the lien position...it is not insurmountable; isasmuch as a foreclosure would be possible, so is your purchase. Feel free to contact me if your wish to discuss this matter briefly.

845-878-2163 or 212-764-5428

Good Luck

RRG

Re: Title report error

You need to jump on this immediately. You need to speak with an attorney (I can be reached at 212-692-5545, and I have plenty of experience making mortgage lenders sweat) and discuss what, if anything, can and should be done to preserve your rights...whatever those rights may be.

What position Chase takes may be irrelevant. What may matter is what position the title INSURANCE company will take with Chase.

Moreover, you need to address this before the foreclosure sale. You may have put yourself in a position wherein you have effectively admitted that yours is a second lien. Whether you can dig out of this hole (not clear whether you are in such a hole, but if you are then you need to dig out or surrender) depends on lots of factors, and a week is very little time in which to make this happen.

In many cases, I have seen banks sell the loan at a discount. How deep depends on a lot of factors, including how much equity there is in the property. For example, Chase's upset price is probably around $300K (interest, taxes, insurance and foreclosure costs+principal). If the property sells at $350K, then Chase is made whole even if its mortgage is a second lien. If that outcome appears likely, then the title company will tell you (and Chase) to take a walk, wait for the outcome of the sale, and make a claim if there is a loss.

There may be value to be extracted here, but you're going to have to fight and fight quickly.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster, it is for informational purposes only and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: Title report error

I don't understand the previous answer. What I would say is that whether your note is accorded a first or second priority probably depends upon New York's recording statutes. In some states, priority of recording determines lien priority. In others, one looks to the date of execution of the instrument. There may be exceptions to the rule based upon "actual notice" or "bona fide purchaser for value" considerations. As a California lawyer, I can't even suggest the answer, but I think your issue is less one of an error in a title report and more one of a timing irregularity in the recording of instruments.