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KimberlyLaw
KimberlyLaw, Attorney and Real Estate Broker
Category: Real Estate Law
Satisfied Customers: 4215
Experience:  13 years of experience in real estate law: Foreclosures, Landlord-Tenant, Condo/Coop, Property Law, Deeds, Purchases/Sales, Estates.
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I have a couple of properties that I am looking at, on one

Customer Question

I have a couple of properties that I am looking at, on one of the properties the mortgage company never filed for foreclosure , they only threatened to, but the owner had stop making payment. In the instance that he did not make any payments and the mortgage holder no longer pursued foreclosure, does those properties fall under the 36 month rule for promissory notes and if so, how do I go about getting cleat title if I can make a deal? The second part of this is the other owner on the other property had filed bankruptcy and the bank voluntarily dismissed the foreclosure proceedings. Would this one fall under the promissory note 36 month statue of limitations in North Carolina or would this fall under the Zombie title. I would guess that the procedure to get clear title would be the same on both wouldn't It? On the first owner it has been at least five years ago and on the second owner the bankruptcy and dismissal was done in 2012.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  KimberlyLaw replied 1 year ago.

Hello, I am happy to assist you today.

There is definitely a big difference between the bank's statute of limitations to pursue an action on the promissory note, and your ability to purchase either property with a clean title that has not mortgage attached.

First, keep in mind that the promissory note itself does not bind the property. The mortgage document binds the property securing it for the note. So the actual note itself is merely a personal debt that is unsecured but for the mortgage document.

If the banks decide not to pursue those borrowers for longer than the statute of limitations (which I believe would be 3 years, I haven't seen the 36 month rule you refer to), then the borrowers would certainly have a claim against those banks to request a release of the mortgage so that the title is clear. The borrower would do the title clearing action.

If you choose to purchase the properties with the mortgages still on record, then be aware that you also are bound by those liens in the event that you can't get them off the title. It would be a risk. You may be able to do it, but it would be much safer to have the borrower go through that process first, rather then wait until after purchase.

Let me know if you have any questions about this.

Kim

Expert:  KimberlyLaw replied 1 year ago.

Hello, I just want you to know that I am logged in, if you have any follow up questions about my answer above.

If not, please go ahead and close out the question with positive feedback. This will keep the system from keeping your money, and will give me credit for my work with you.

Thank you!

Kim

Expert:  KimberlyLaw replied 1 year ago.

Hi, just a reminder, please close out the question with a 4 or 5 rating so that I get credit for my work with you.

Best of luck,

Kim

Expert:  KimberlyLaw replied 1 year ago.

Hello again,

I need to get this question closed out. Please close the question with a 4 or 5 rating. Otherwise, the system may keep your money and I won't get paid for my work with you.

Feel free to request me again in the future!

Thank you!

Kim

Expert:  KimberlyLaw replied 1 year ago.

Hello again,

I see that this question still needs to be closed. Please close out the question with a 4 or 5 rating. If you don't, the system may keep your money and I won't get paid for my work with you.

Take care,

Kim

Expert:  KimberlyLaw replied 1 year ago.

I need to close out this question. If you don't close the question (with a 4 or 5 rating), the system may keep your money and I won't get paid for my work with you.

This is my full time job, so I appreciate you taking care of this,

Kim