Q: I bought property in NC in 2005. I financed the property with Carolina First Bank. This bank was sold several times.
The mortgage bank changed hands several times and I think my loan file was lost. I haven't made any payments on the mortgage since 2010. I havent received any communication from the last bank that took over in 2010. I havent received any foreclosure notice. I'm still listed as the property owner in the County's tax records. I'm listed as grantor and Carolina First Bank is listed as grantee. Can I sell the property without notifying the bank?
A: If the statute of limitations has not run on the mortgage, you cannot pass clear title to a purchaser. No attorney or title company can issue title insurance on the purchase to the new owner with the mortgage still in place. We have recently seen an increase in zombie mortgage foreclosures. Zombie mortgages are old mortgages that have been in default for a long time with no action from the bank. Many of them are rearing their ugly heads and upending families who cannot afford to cure the delinquency. In summary, check to see if the statute of limitations has run. If so, you can proceed. If not, you have to pay the mortgage when you transfer the property.
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