Disney ROFR'D My Vero but didn't pay my mortgage

[summabreeze85]

Long drawn out sales process for my Vero Beach contract...
Had it sold over the summer to a guy who dropped off the planet and never returned closing docs.
Found another buyer and submitted it to ROFR which Disney snatched @ $49 (250 points)
Disney took a month to send me the paperwork, I signed and the transaction was completed but Disney sent me a check for the total amount and didn't pay off my mortgage. When I contacted the private mortgage company by which the loan is held, they didn't indicate any need to immediately pay off the loan which I thought was totally bizarre. The reply: "If you wish to calculate your payoff amount...blah blah". The deed was recorded by Disney December 4th. I know I should've taken the check and paid the mortgage but at that moment I needed that money for something else.
I wonder how long this will take for someone to realize I have a mortgage for a property I no longer own?

 

[supersnoop]

Long drawn out sales process for my Vero Beach contract...
Had it sold over the summer to a guy who dropped off the planet and never returned closing docs.
Found another buyer and submitted it to ROFR which Disney snatched @ $49 (250 points)
Disney took a month to send me the paperwork, I signed and the transaction was completed but Disney sent me a check for the total amount and didn't pay off my mortgage. When I contacted the private mortgage company by which the loan is held, they didn't indicate any need to immediately pay off the loan which I thought was totally bizarre. The reply: "If you wish to calculate your payoff amount...blah blah". The deed was recorded by Disney December 4th. I know I should've taken the check and paid the mortgage but at that moment I needed that money for something else.
I wonder how long this will take for someone to realize I have a mortgage for a property I no longer own?

Was the loan actually secured by the property? Or was it an unsecured loan?

 

[crisi]

As long as you keep paying it, they won't care. The moment you stop paying it, they may notice you don't own the property any longer, but that doesn't mean you don't owe them the money. The loan and the property are independent - although if the loan was secured by the property they no longer have the option of taking the property from you. Then again, if that was the case, I doubt the closing would have happened. Usually if the loan is secured by the property, the check gets written to the mortgage company.

 

[supersnoop]

As long as you keep paying it, they won't care. The moment you stop paying it, they may notice you don't own the property any longer, but that doesn't mean you don't owe them the money. The loan and the property are independent - although if the loan was secured by the property they no longer have the option of taking the property from you. Then again, if that was the case, I doubt the closing would have happened. Usually if the loan is secured by the property, the check gets written to the mortgage company.

If the loan was secured by the property, then the bank would have filed a lien against the property, which would have prevented title from transferring to the new owner. So, if you stop paying on the loan, they could still seize the property and the purchaser would rely on their title insurance to compensate them for failing to clear the lien. That company would then come after you with full legal recourse.

But, since the loan wasn't paid, I think it's much more likely that the lien wasn't filed, and the loan was not secured.

 

[summabreeze85]

Thanks for your input. It's interesting I thought the loan was secured by the property. And for the Orlando dvc I own with a mortgage the lien was filed, but for this Vero property there is nothing showing up in the clerk of courts for Indian river county. I'll just keep paying and hope nothing happens! Should be able to pay it off by the middle of the year so I'll eat the $100 interest I'm paying each month.