Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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We went to court today about eviction. This is what happened:  The judge said we have to leave our house but after I stood there and talked to him and showed him our paper`s he said get a lawyer and see about this situation.  I told him I understood why he had to rule the way he did and he was very nice about the entire situation. He knew my brother and we he said he thought he felt sorry for his ruling until he found out who my brother is and hen he really felt sorry because they are good friends and my brother is getting ready to take state bar. I felt better after I talked to him because he told us to not let this go.  I saw a friend that is a lawyer and she couldn`t believe all of the info that you guys have provided. She has a client that she was waiting for that also is facing foreclosure from Deustche Bank so she was really interested in the info.
Here is the best thing that happened...this house sits on 1 and a small portion of another lot and there is only one lot listed on the property so we actually own the property around the house and the judge told us this and that it will stand that way. Nobody can get a clear title to the property and we can build anything we want around this house because we own the property.

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alright my first though here is LOL! LOL!
I had a thought on this that just giggled me.
You own the property around the house.
What if you were to build a House around the house? LOL LOL!
Well. Then you would have A home within a home, and I've seen this done before.
Only seen two houses being built this way ( I wonder if those homes, were in the same situation.)

It would however make sense though.
build a home around the home, and possession is 9/10th Of the law. WOOPS..... they'd be out of a home now wouldn't they? And i doubt very seriously they could do anything about it.

The judge is correct .... you don't need to let this go.

SRSD, you MIGHT want to REALLY learn more about REAL ESTATE, because you now have some "easement" and other issues to pursue with "clouded title".

You might wind up with the capability of charging LOT RENT for the driveway "easement" to the home.

Find a Real Estate Agent willing to answer some of your questions.
And you should begin looking for a Real Estate Attorney as well.

Seems like things have worked out for you today. I'm glad.

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Great!  Maybe you have a Judge that is too smart for Morris, Schneider and Prior.  Hopefully he will not allow them to steal your home from you.

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You can click on the attachment below and see the property we own.  we have the swimming pool and pool house plus there is also a large garage that was put up since this picture was taken.  A corner of the house is also on the property.  The strange thing that is to the left is a brick wall. The entire back is fenced in and we have 2 large dogs that are not very nice so I thought about just leaving them in the back yard because we can put a fence right off from the back porch and it will be on our property.  We need to put a pool liner in but why bother.....I think I might like the swamp look.

Click image for larger version - Name: Doc.jpg, Views: 47, Size: 84.71 KB
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Noodles,  I saw this with my own eyes and thought it was hysterical....a man and his wife got a divorce...she got the house and he got the property ....   he built chicken houses around the sides and in back of the house.  The house is in Anniston Al. I couldn`t understand why anybody would build chicken houses right next to a house but I found out....REVENGE.....nothing smells like a chicken house in the heat of an Alabama summer...He built 6.

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Hey srsd,

Looks like you may have a bit of reprieve.  Try to stay in front of this Judge.

Deutsche Bank did the foreclosure on us.  If you or your attorney needs any information on DB or anything else about this fraud, don't hesitate to ask. 

Your family is still in our prayers.  Keep me posted.

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there is also another term that escapes me at the moment.
It has to do with a person living in a home for 20 years rent free.
After 20 years that person can actually claim the home as theirs if an "eviction" notice has not been filed by the current owner before the expiration of the 20 year period.

I am thinking a simple "eviction" notice filed by you to the Mortgage Company might even take care of this problem for you.

you are in a lovely position right now srsd.... RESEARCH the Many many options you have, and find the one that works the best for you.

I'm pretty sure you already know you need to research, and familiarize yourself with Alabama, Real Estate Laws, on your own, through a Realtor, as well as a Real Estate Attorney.

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The term is Squatter's Rights.

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I am still thinking about the chicken houses around the yard.....they could swim in the pool.

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Help me have a house that spans two parcels/lots, right?

Both lots are deeded to you? Separately with individual parcel numbers?

Were the 2 lots and the house mortgaged together? Did they just forget to include the adjoining lot in their foreclosure?

OR Did you own the lots and build the house later????????

Help! I don't get what happened here 

By the way...did the judge issue a date you had to vacate?
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I think that the term you are actually looking for there is "adverse possession".  I am not inclined to think that this is a very productive avenue, though.

There certainly seem to be a variety of rather unusual issues associated with this property.

While I realize that it is tempting to think of ways to be hostile to a purchaser of the property, I think there are two rather important things to bear in mind.  First, a future buyer of the property is NOT the party that you believe has wronged you.  Taking out hostility on that person seems to me to be a bit UNFAIR.

Second, a purchaser is generally entitled to quiet enjoyment of a property free of harrassment and nuisance.  I would think that things that you might do that are inherently hostile to the quiet enjoyment of the purchaser might be legally actionable.  I wouldn't recommend this approach.

On the other hand, you DO seem to have some various rights which might be validly asserted.  If the house is, in fact, encroaching on YOUR other property, you MIGHT have a right to have then MOVE the house or DEMOLISH the portion of the house that encroaches.

But I would NOT think that this is cut and dry.  The precise location of the property boundary is a matter of both survey and various other aspects of law.  In fact, notorious encroachments might be the basis for an adverse possession claim.

I WOULD RECOMMEND THAT YOU DISCUSS THIS SITUATION WITH A COMPETENT ATTORNEY.  I also think that you might want to RECORD a copy of a survey, survey opinion and/or plot plan, if this is possible.  This makes a RECORD of your CLAIM to the property upon which the encroachment is constructed.  You also might want to consider IMMEDIATELY constructing a FENCE along the actual property line.

The existence of the fence and publicly recorded indications showing the encroachment may help to demonstrate that a purchaser took title to the parcel WITH NOTICE of your adverse claims.

I think that you are going to find that your state law REQUIRES you to give an EASEMENT over your property to allow access to the property.  But the precise location, dimensions and circumstances of such easement may be tightly constrained.  This does NOT mean that someone can cross YOUR property WHEREEVER they want nor can they necessarily ALTER your property or treaspass elsewhere outside of the defined easement.  The easement may already be defined by an existing driveway, etc.

The simple fact of the matter is that depending upon the nature and extent of the problems, including the encroachment, the VALUE of this property to anyone else may be rather significantly IMPAIRED.  That is the mortgage investor may be UNABLE to sell the property to anyone except at a steep discount.  So you might even be able to buy it back at a discount to the purported transactional price at the foreclosure sale.

Again, best of luck to you as you work out your future housing arrangements!
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I own one lot and my 16 year old owns the other lot.  When the house was built, it was suppose to be on one lot.  When the mortgage was done, the compnay listed the house on 1 lot.  If you look at the attachment on the above post, you can see the house actually sits on part of his lot so now we can sue them and make them move the house or thay can buy that (now very expensive) lot.
My son`s name wasn`t suppose to be on that lot.  It was suppose to be on the lot across the road from us but it ended up on the lot adjacent to the house which is great.  I asked the judge if the foreclosure meant loosing both lots and he said no that it was just lot 1 block 3 and it will stand at that so we own the back yard, the swimming pool the large shed a brick wall and a fence.
I think he must be familiar with Ameriquest/deustche Bank because he asked me how did we get stuck with that company.  There was 4 more cases in the court room that was also dealing with Ameriquest.  We are in a small city and that is a lot of people to be dealing with the same company. 

We tried to sell this house last March before the ARM started and when we went to the closing, the lawyer stopped the sale because he said nobody can get a clear title because of the was the house is sitting on the 2 lots.  That is when we found out my son`s name was on the lot.

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Thanks for the explanation SRSD. What a predicament!  Somewhere down the road this may be your ace in the have leverage they will have to make a serious effort to get around!

Oh what wicked thoughts I'm having!!
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My friend, we are ALL ROOTING FOR YOU and hope for the best.  Your situation is indeed INTERESTING.

But I want to throw out a caution I have expressed before.  IT IS AN EXTREMELY BAD IDEA FOR YOU TO POST IDENTIFIABLE SPECIFICS ABOUT YOUR SITUATION ON THIS OR ANY OTHER MESSAGE BOARD.  This is particularly true, when you make various FACTUAL POSTS relating to the specific history of possible confusion or mix ups as to ownership of particular parcels OR the boundaries of properties.

You may BE SURE that the mortgage lender THOUGHT that it was getting a security interest on a house WITHIN the boundaries of a particular lot.  Lenders DO try to protect themselves from just this sort of situation by obtaining an engineering survey opinion/plot plan and obtaining TITLE INSURANCE.

But I would NOT SIT SMUGLY thinking that the LENDER has a problem.  It is possible and even LIKELY that the Lender wil make a claim to its title insurer and the TITLE INSURER IS GOING TO SUE YOU FOR A REFORMATION OF THE DEED AND OR DEED OF TRUST.

Keep the identifiable SPECIFICS OFF THE BOARD.  It is NOT in your interest.  BE VERY CAREFUL ABOUT WHAT YOU SAY TO OTHERS, PARTICULARLY IN A PUBLIC FORUM REGARDING THE HISTORY AND FACTS OF THE OWNERSHIP OF THE PARCELS.  Frankly, I think that you have already given so much information away within this message thread that your chances of prevailing in litigation with a title insurer are SLIM.

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Joe B

     I am with WAR on this one. While it may be fun to take some small measure of 'revenge' over your situation, I urge caution here. I think there most certainly will be a title insurance claim made by the mortgage company. This claim may force you into the position of ending up back in court with a potentially very expensive legal fight on your hands.

     In the end, I am really not sure what you would win, even if you prevail. You may spend a very large amount of money, prevail, and "win" nothing. While causing them some financial pain, or even forcing them to tear down some portion of this home might give you a measure of satisfaction, this outcome is far from certain, and may cost you financially and emotionally more than you can bear.

     The interesting situation around your minor son being on the deed will potentially open you up for some significant problems all by itself! I haven't figured out for myself all of the possibilities, but I assure you that many of them are unpleasant for you. There are a few scenarios where you may benefit, but there is some significant risk here...

     This entire situation is undoubtedly strange. I wish it were a slam dunk for you to simply claim the area over your other lot. However, I don't think it is quite as clear as you might think.

     There are two other possibilities that you may want to consider:

1. Offer to sell them the other property at a price that restores your financial situation, but is less than what it may cost them in a protracted legal fight. Start over and move forward.

2. Offer to purchase the house back at a discount for the same reasons. The current housing climate gives you some leverage here, and they may give it serious consideration.

     At the very least, you have a very complex situation on your hands. I wish it were not so, but your ownership of this adjacent lot doesn't necessarily give you the position of power. I also urge you to post carefully, and don't need to add anything to WAR's admonition.

     Even more important however, is that you should find competent counsel as soon as possible. There are myriad options for you to consider, and much of it will require careful consideration. We can help, but you NEED very, very good counsel to advise you.

     I wish you the best of luck, and will offer what help I can. Good luck!!

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There is but another consideration – building setback.  This improvement seems to be situated in a formal subdivision with lots of about half acre in size.  Normally there is a building setback and with this size lot I’d expect the setback to be 20-feet or so.  That being the case, someone will need to tare down more of the house then just the part that encroaches upon the adjoining lot.  It looks like the demolition would reduce the house to a point where the blue “7” is located on the aerial photo.  It is possible that the lucky new owner could apply for a “special exception” to reduce the setback to zero, but in most jurisdictions that would never fly.


I think this is going to come down to a title insurance claim.   


Now for a few more questions:


Was the house there when the current mortgage was taken?


Did you build the house?  If you did, then you may share some of the liability that it straddles two lots  Although you may have a claim with the surveyor who positioned the house on the lot IF you can prove that he knew the house was to be on the mortgages lot with the required setbacks.  If you used a builder, the same possible liability exist.


You will need weave this together in a way that puts you in the position of just being the average person who relied on the expertise of others to insure the house was built entirely on the mortgaged lot.


All the more reasons you need a lawyer


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I cannot emphasize enough, that we have YOUR INTERESTS at heart here!  The complexities of your situation are almost a characature of a fact situation as it might appear on a LAW SCHOOL EXAM

A purchases lots 6 and 7.  A subsequently builds a house that is mostly on lot 6 but that slightly encroaches on lot 7.  A names his new country estate "Blackacre".  Lot 7 actually complete surrounds Lot 6 except for a deep gorge on the Northeast corner.  A gravel driveway crosses from Lot 6 to Lot 7 to get to the county highway. 

A subsequently mortgages the house to COLLOSSAL Subprime Mortgage Company, granting a security interest by deed of trust only to lot 6.  COLLOSSAL engages and appraisal of the property from INFLATED Appraisals LTD and obtains a Lender's title insurance policy from CARELESS Title Company of Amercia.  CARELESS Title engages a local engineer who produces an erroneous suvey opinion / plot plan showing the the structure is well within the property limits of lot 6.  CARELESS insures the title based upon the erroneous suvey opinion / plot plan.

COLLOSSAL subsequently sells its interest in the promissory note to CSM Capital, which in turn sells its interest to MONUMENTAL Investment Banking Mortgage Capital.  MONUMENTAL serves as the depositor of a mortgage backed securities pool exchanging A's deed of trust together with 50,000 other mortgage loans to PINNACLE SUMMIT Bank & Trust Company as Trustee of the "Mounmental Mortgage Backed Asset Trust Series 2002-CSM-3".  As part of this securitization transaction, PINNACLE SUMMIT also appoints SHADY Subprime Servicing as the mortgage servicer of A's mortgage. 

A subsequently has some financial difficulties which result in a declaration of default.  SHADY Subprime Servicing appoints Mr. U. Always CHEATHAM, of DEWEY, CHEATHAM & HOWE LLP, as the substitute trustee of A's deed of trust.  Mr. CHEATHAM sells the property securing A's promissory note to SHADY Subprime Servicing.  SHADY Subprime Servicing subsequently institutes a judicial ejectment action to remove A and his family from the property.  A points out to the judge that house encroaches upon Lot 7, which is owned by A's minor son.  The judge order's A's ejectment, but encourages A to retain counsel to protect A's (and the famiy's rights) to Lot 7.

Discuss the liabilities, rights and remedies available to each party.  What would you recommend to SHADY Subprime Servicing as its next course of action?  Similarly, what would you recommend to A?  How would your advice to SHADY differ if CARELESS had failed to obtain an engineering suvey opinion / plot plan?  How would your answer differ if A had posted comments in a public Internet Forum explaining that the construction of Blackacre on Lot 7 was accidental and admitting that he had intended to give a complete interest in the newly constructed Blackacre mansion?  (You have thirty minutes.) 

A is angry about the foreclosure and sale of Blackacre and decides to find various ways to obstruct the use of a subsequent purchase of Blackacre, Innocent PURCHASER.  To this end, A arranges for the construction of a moat (which he calls an irigation ditch) along the highway making the driveway crossing from Lot 6 to the county highway impassible.  A also contructs a barbed wire fence.  A also decides to subdivide Lot 7 and to develop four new businesses.  On the portion of Lot 7 including Blackacre's pool & cabana, A has in mind to obtain a liquor license and conduct nude sunbathing competitions.  (Innocent PURCHASER is a deeply religious, upright Christian, and a member of the Blessed Sisters of Perpetual Chastity.)  On other portions of the property A hopes to set up a business raising chickens and another business for commercial skunk ranching.  Both of these businesses are upwind of Blackacre.  A is willing to operate both businesses at a loss.  Along a fault line that crosses Lot 7, A intends to develop an underground storage site for toxic chemicals and nuclear waste.  A intends to use the irrigation ditch to dispose of the excess chicken excrement, as well as the cooling water bathing spent nuclear fuel rods.  A is also threatening to demolish the portion of the stately Blackacre mansion which encraoches upon Lot 7.  A also intends to violate his township's ordinance against flying any flags from his property.

Innocent PURCHASER visits your law office to inquire about her rights.  What advice do you have for Innocent PURCHASER?  Explain the rights and remedies available to all parties.  How would your answer differ if A had posted comments in a public Internet Forum describing and explaining that these businesses were set up to avenge the foreclosure of Blackacre.  (You have fifteen minutes.)

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Another excellent post Bill but I was hoping for an answer at the end.


And to you srsd it appears you did well all factors considered..


Who in hell would want to do battle with you on this property(s)?!?


I would not go spend a bunch of money on an attorney at this point. Wait

and see what happens. But make in darn clear to all peripheral parties

involved that you are going to use every *legal* means available to make

this a property that nobody but you wants. Tell them you feel you have

been dealt a grave injustice and you have a right to fight back as long as

you stay within the *law* and you will use all remedies that are legal.



                   I don't think they can sell this partial property. 

          And how would anybody but you get title insurance on it? 

                         And again who besides you wants it?



I prayed for you srsd and I know others in here did as well.  You may have

a winner in the long run.. Please keep us posted.


Mr Ed  |  972-596-4363  |

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When I GRADED exam questions like the FIRST above in the Wharton class on the law of real estate finance (as the teaching assistant), I would usually construct a MODEL ANSWER first.  The answers were always interesting to read.  Different students identified various issues.  Few students would see ALL of the issues correctly.  But the students would find various ways of expressing these.  [Out questions were usually a bit more basic as the foundation course tended to cover things like the statute of frauds, the recording acts, etc.]

This law course was always FUN precisely because we could invent INSANE exam questions that challenged students' knowledge and understanding of the subject matter related during the course.

I do not think that it is necessary to answer.  I think that intuition of persons with a keen sense of fairness and justice will suggest some of the correct approaches, particularly to the second whimsical question.  And in the end, there are some rather basic rules to fall back on, such as a person's right to quiet enjoyment and the implicit tortuousness of conduct which is INTENDED TO INJURE.  srsd is clearly a good and charitable person who might have been momentarily overcome with frustration and anger.  srsd will be well counselled to approach the matter equitably.  

Ed, I think that you and Way To Go are very much on the RIGHT track here.  The only thing that I would emphasize is that if srsd HAS a good engineering survey opinion/plot plan there is some merit in RECORDING IT.  This puts prospective buyers ON NOTICE OF THE BOUNDARY ISSUES.  A recorded AFFIDAVIT might also do the same.

But srsd should CONSULT A LAWYER ABOUT THIS.  Any recorded document MIGHT be the basis of an action for slander of title or give rise to an action to QUIET TITLE.  The fact that the minor son is the owner of the adjacent property actually means that limitations on causes of action arising to the son may TOLL until the son reaches majority!

Looking for the negotiated settlement is the way to go!  Given the turmoil in financial markets, it seems to me that any prospective buyer will choose another property from the ample nationwide inventory rather than but this can of worms.  Frankly only a purchasing LAWYER might hope to have much chance!    
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Here's my two cents.

Get the survey.  Make sure your representations about the property are true and correct.  Ask the surveyor about putting up berms.  You should be
able to put up a berm inside your property lines. 

Remember Markie's "Ameriquest Sucks" on the side of her house?

I'd put a sign in the backyard that is still your property.

"Buyer Beware".

This house does not have a clear title.

Please check with a lawyer first to make sure it is legal to do that in your area.

You have now given fair warning. 

I am glad to see you have options.

Don't do anything that would jeopardize the other lot.

Check out your options on the easement.  Can you charge them money for the easement?  Can you legally deny the request for the easement?

Can you charge rent for the corner of the house that sits on your property?

Could you get a restraining order prohibiting sale of the property since
a portion of the house sits on your property?

Can they legally sell the house eventhough they know a corner sits on your property?

What about access for the utility companies? 

You may have quite a few options, so take a few days to gather information
about your options.

Make an informed choice.

You are getting a lot of good ideas.  Options are a good thing.


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Way To Go
Another idea:

Most jurisdictions require a plat to be submitted indicating the location of the proposed house before a building permit is issued.  Normally they will only accept a plat that was prepared by a civil engineer/land surveyor.  Therefore you should pull the permit application and copy everything in the file.  Hopefully the plat will be included. 

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I have to agree with William's advise about not posting identifiable information on this site. After all that's the only reason why I don't use my true name when posting. But of course, even if you don't use your name you can still be easily identified.

Again, please do be careful about the information you provide on the Internet. I certainly don't want to see you get victimized a second time.

I wish you the best of luck!


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You are all so right about the posting.....I have been very excited abut what happened plus all of the stress about the step son that Icompletely lost my head....We did send the step son to Ga last night to a ficility so maybe I can think straight now.we have had to sit with him 24/7 for the past 9 days.
On the other hand....I wouldn`t do anything to irritate anybody that bought this house.  I am very PO`ed at a realestate agent that has been to our house 5 TIMES trying to get us to move out and as many times as you tell them you have no intention until you are forced out....they just don`t seem to get the message.   Maybe I can buy the property around his house and build chicken houses...

I have had such excellent advice from everyone on this board that I really want to thank you all and if there is ever anything I can help you with...please let me know.

Please continue to pray for my stepson. I am still holding out hope even though we know there is no hope for his recovery and the only thing we have is prayers to accept what ever comes.

I haven`t shed one tear about this house because I know we are not at fault but I have cried a river of tears abut him.

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Hey....I have a realestate agents run title checks before they try to sell a house??  I don`t think the realestate agent that has been to our house has any idea what he is getting into with the title situation.
we had no idea we had a title issue until we tried to sell and went to the closing on this house.
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I am a Realtor and it has been my practice to run title on everything I am involved with whether buyer or seller representation.  Over the years, this has led to many "interesting" discoveries which usually get resolved prior to property going on market or being sold.  Have to say this is primarily a CYA measure on my part but also to inform buyers, sellers and their attorneys of potential title issues.  Most recent experience was with 'adverse possession' issue, seller and seller's agent were trying to cover up, yet square footage of subject area was included in MLS listing info and P&S Agreement being represented as portion of condo being sold.  Needless to say, we worked it out and buyer was able to take possession of entire living space with no cloud on title.  I can tell you this is not general practice among Realtors but it should be.
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Any conveyances that were not valid can jeopardize your position here. I do have to wonder why a parcel of land would be deeded to a 16 year old

 Any evidence of property being conveyed to circumvent a legal responsibility such as IRS liens, assets in a bankruptcy, probate..whatever WILL somewhere along the line come back to bite you in the arse.

Make absolutely sure there is NO cloud on the title to the adjoining lot.
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Once you have run the issue of what you CAN and CANNOT publicly say as to the encroachment and title clouds, you might also ASK your attorney about the propriety of INFORMING the broker via certified mail of the SAME title issues that you are able to reveal in public recordings.  This would put the broker on notice of the title problems and MIGHT impose some legal duty to disclose. 

Whatever you FILE will be found by the title searcher and disclosed to the title company.  But the title company may simply make this an EXCEPTION to the title policy.  Frankly NO LENDER should LEND based upon this EXCEPTION.  But a dishonest originator might simply OMIT the exceptions page!  The downstream mortgage investor might NOT notice.  In essence the Lender get NO PROTECTION, but the buyer gets financing.

Where you would WANT TO BE is to have the buyer take the property with NOTICE as to the encroachment and clouded title.  If the buyer also has NO TITLE INSURANCE POLICY, the buyer is going to have a VERY HARD TIME defending the title.

I AGREE with Ohio that the validity of a converyance to the minor child is something about which I would be VERY CAUTIOUS!
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