can a loan be taken out on house from someone else after I was grant deeded property?

Question

I was grant deeded a property and it was recorded in my name,property shows I'm the primary owner.Then the person who grant deeded property took out a loan 5 days later for $275,000 from a mortgage company and it was insured by a title company now theres no equity left in the house,how could they give a loan with out my knowledge,can I sue mortgage company and title company for recovery?

Answer 1

I'm not clear on just what happened. However, "first in time, first in right". Meaning, that if your grant deed was not recorded in the Land Records of your County's courthouse before the grantor obtained a loan from the mortgage company, and the mortgage company recorded its lien BEFORE the grant deed was recorded, then you're out of luck. If your grant deed was recorded first (at the courthouse) and before the mortgage company's lien was recorded (at the courthouse), the the title search should have shown it, and the title insurance company will be on the hook and will have to insure the mortgage if it's not paid.

Answer 2

If they took out a loan after you were deeded and recorded the deed, then they did not legally own the property to take out a loan,

You need to sue the person who deeded the property to you.
Since they were the ones that committed fraud both to you and to the mortage company ( should be illegal also, the police should be called for fraud against the mortage company.

You should be able to merely prove your deed by paperwork at the court house, Since you did not buy title insurance you don't have any insurance to protect you for a bad title ( which is what you got)

You need to sue
1. in civil court to have the lien removed by the court since it was not legal to place a lien on property already owned by someone else.

2. the person who deeded you the proper for the value of the property or the lien since that is the amount now owed by the lien and other costs

a. winning one case may get the other discharged but you need an attorney.

Answer 3

Absolutely! The title insurance company is 100% responsible. It does not affect your value. You do not have your state listed but most you can file your claim on the Internet. % days or 1 hour after title is filed, it is yours.