July 2026: Problems You Never Want to See: Death with No Deed & No Will (TP)

Presented by Kay M. Creasman | Virginia Counsel & VP of ORNTIC

FACTS: Canton and Marguerite took title as tenants by the entirety in 1978. They divorced in 1987. In 2010, Canton died. There are no deeds of record removing him from title and no will or list of heirs filed. In 2013, Marguerite took out a reverse mortgage, which was foreclosed in 2023. She only owned a 50% interest.

Q: What do we do?

A: Upon further investigation, the agent discovered that they foreclosure attorney realized the ownership problem and obtained a court order which was not recorded. The court order gave notice to Marguerite's heirs (s shown in a list of heirs) and her stepson, who appears to be the sole heir of Canton. Nothing in the divorce records available show that either party was to take title to the real estate. Marguerite remained in possession. The court issued an order nunc pro tunc reforming the deed. This means the deed of trust was legally corrected and effective retroactively to the original date of the deed of trust. The trustees claim that the foreclosure is then valid, as it occurred AFTER the court order. Unfortunately, only constructive notice was given to Canton's son. No evidence exists that he received actual notice of litigation. The court issued a default judgement.

We can insure based on these facts, due to the court order. The general premise, with regard to real estate, is that the law favors the free transfer or title and dislikes title that prohibits conveyance to others.