Undiscovered/unreported flaw on title

[candg918]

What is the name of your state? OK

We have an owner's title policy as well as a title policy for the mortgage holder.

We purchased our house 20 years ago. At that time no title flaw was reported but there was a requirement that title insurance be obtained through a particular title company.

We tried to refinance the house and the mortgage company discovered that the seller's wife in 1996 had not properly signed the sale documents. I was only told this by the mortgage officer at the bank and do not have a copy of the report listing the defective title information. The mortgage company no longer has the report on file since we were able to get a "good" title search through the original title company.

I spoke with the attorney who did the original title search for us about the problem. He said not to worry about it because no one could make a claim for this problem after 20 years. He did not want to do anything else.

What is the proper process to get this resolved? Is the attorney or title insurance company responsible for solving this problem?

Thanks.

[nextwife]

The underwriter that insured over this issue previously should be able to "indemnify" whichever title company writes title the next time around, as they assumed responsibilty for any claims resulting from that title defect.

[candg918]

Thank you for your reply.

I expected this to keep us from getting a home equity line of credit so have not sought one. Aren't the requirements for a line of credit the same as for a refinance?

Thanks.

[nextwife]

In my experience, they are often underwriten more "loosely" and the title work is often no more than a letter report, serached from deed FORWARD, presuming you got "good title" when you bought.