There is a property coming up for auction next month that i am interested in. However i have some concerns. While looking through the paper i noticed the property was not “subject to mortgage”. Legal definition for “subject to mortgage” as the philadelpia sheriff’s office has it is:
The property is NOT being sold as a result of the first mortgage, but as a result of delinquency on a subsequent mortgage. Successful bidders will not only be responsible for their bid price, but for all mortgages preceding the mortgage of the lender who foreclosed on the property.
This leads me to the conclusion that this property, which doesn’t have the above clause, must be a first mortgage (something that was confirmed by the sheriffs dept).
Yet, when i had a title search done, 2 open mortgages showed up. It appears as though the 2nd mortgage is foreclosing on the property. My concern is that if i am the winning bidder, i would be responsible for the first mortgage.
My question is it possible that the first mortgage was paid off (satisfied) and not recorded in the public records. If this is the case how could i confirm it. thank you for all the great advice and for your help.