title Company mistake

[cmassaro]

What is the name of your state? Florida

When I purchased my home the title company mistakingly transferred the deed into the wrong persons name. I was not shown the deed at closing (because only the grantor signs it) therefore I did not find out until my home owners assoc. sent me a statement book for the payments and someone elses name was on it. I then checked with the county records and sure enough the house is in someone elses name.

Technically I now have a mortgage and live in a home that is not mine. If the person in which the deed was transferred incorrectly to is uncooperative in transferring it to me do I have any grounds for a claim against the title company to have the mortgage paid off?

The title company is saying that they can clear the title issue but I guess I would say that also if I didn't want a claim started. Can they somehow clear the issue if the "new owner" isn't willing to sign a deed to us?

[HomeGuru]

Originally Posted by cmassaro

What is the name of your state? Florida

When I purchased my home the title company mistakingly transferred the deed into the wrong persons name. I was not shown the deed at closing (because only the grantor signs it) therefore I did not find out until my home owners assoc. sent me a statement book for the payments and someone elses name was on it. I then checked with the county records and sure enough the house is in someone elses name.

Technically I now have a mortgage and live in a home that is not mine. If the person in which the deed was transferred incorrectly to is uncooperative in transferring it to me do I have any grounds for a claim against the title company to have the mortgage paid off?

The title company is saying that they can clear the title issue but I guess I would say that also if I didn't want a claim started. Can they somehow clear the issue if the "new owner" isn't willing to sign a deed to us?

**A: there is more to th is story. Who is this wrong person and how is t his person connected to you? Why are you not camping out at the title company's office and demanding correction today? Why have you not talked to a real estate attorney?

[nextwife]

AS the title company must first SEARCH the name of the proposed insured, and then issue a commitment showing the Proposed Insured, a last minute at-the-table change of purchaser name is highly unlikely (as that normally also results in a corresponding change in the Schedule B1 Requirements, which FIRST requires a search for liens and judgemnts appearing under their name that would attach to the RE)). Is the name of the deeded party DIFFERENT than the Proposed Insured that was stated on the pre-closing title commitment? I agree something sounds odd -the title company would NOT just plug anyone's name arbitrarilly into the deed.

[HomeGuru]

This is going to be interesting. I can tell already.

[nextwife]

I wonder if there is some type of investor or financing shenanegans involved?

[cmassaro]

Yes, the pre-closing title commitment has our name on it and all of the searches were done. The only place the wrong persons name shows up is on the deed and the survey which was apparently done before the change as well - read below.

The house was under contract which did not work out so we came in and signed contracts and then purchused the house. The Sellers had already moved out of state so apparently the title company had already sent them a deed to sign for the last buyer, which fell through, and they never sent them a new deed to sign when we stepped in to buy the house with our name on it. The title company still had the old deed when we closed and it just slipped through the cracks. The incorrect deed was apparently sent back to our lender with the signed closing package so I cannot beleive we have not heard anything from the lender yet.
The lender has not even caught the fact that we gave them a mortgage on a house we technically didn't even own.

We do know the person that was going to buy the house before us - that's how we found out about the house and the sale not going through - but it is not often that an opportunity arrises to possibly have a mortgage paid off - if possible - because the title company screwed up. I am confident I can possibly make a deal with the incorrect "grantees", but first, as they say, "business is business". This house has a market value of approx. $475,000 so we are not talking pocket change. I am not looking for the morally correct answer, i know what that would be, I am looking to seize an opportunity.

Do I have a ligitimate claim??

Thanks for the advice - good or bad.