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I bought it from Fannie Mae after they had purchased back from the mortgage holder who walked away from it in August 2012. They purchased it at the County Sheriff's Sale in September 2012. It's a special warranty deed. No sir, it didn't appear on the title search prior to purchasing the property, because it was only a default judgement against Fannie Mae at that point. It's not yet a lien, but the HOA attorney is threatening to place one agains the property next week if it goes unpaid. The state, for what it's worth, is Delaware. Thanks.
Thank you for your follow-up, Chad.A special warranty deed not provide the same protection as a general warranty deed. Such a deed only warrants that the grantor received title and that unless noted specifically in the deed, the property was not encumbered during their period of ownership. So if this lien was not recorded from the time it was lost to the bank and you bought it, the bank is not responsible for this debt. You, however, would be as you would have otherwise purchased this property with all liens and encumbrances on it that existed at time of purchase. In essence this is a situation where you purchased it with all debts, including this one, and as a consequence you would be liable for this lien, even if it has nothing directly to do with you.I am sorry.
Thank you for the quick follow up and explanation, it was helpful. It clarified the matter and now I will simply approach the HOA/Attorney and see if we can reach some sort of settlement. Thanks again.
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