Missed Lien on Refi.

[binde34]

What is the name of your state? North Carolina

We refinanced on Dec. of 2004. No problem with the closing. February of 2005, recieved a letter to tell us that there was a lien place on the house. It was to be paid off if we paid off our original mortgage. We did not remember this was even there. We took the letter to the closing attorney all we were told was that we should just pay it off. We know that it has to be paid off. We paid an attorney to do a title search and he claimed that at the time he did not find it. But after the letter we showed him he says yes it is there. What can we do? I seem to get the run around.

 

[seniorjudge]

What is the name of your state? North Carolina

We refinanced on Dec. of 2004. No problem with the closing. February of 2005, recieved a letter to tell us that there was a lien place on the house. It was to be paid off if we paid off our original mortgage. We did not remember this was even there. We took the letter to the closing attorney all we were told was that we should just pay it off. We know that it has to be paid off. We paid an attorney to do a title search and he claimed that at the time he did not find it. But after the letter we showed him he says yes it is there. What can we do? I seem to get the run around.

It was to be paid off if we paid off our original mortgage. We did not remember this was even there.

The attorney's stupidity did not make your bill his problem. Pay it off.

 

[nextwife]

Although, technically, if the attorney wrote the mortgagor's title policy for the lender, it IS also his problem as the title agent.

AS title agent, he or his underwriter (likely he, under E&O as part of agent's agreement) has a responsibilty to put the lender in first position. THEN he has recourse to go after the borrowers for reimbursement. Yes, the borrowers are responsible, but that does not relieve his responsibilty to the "insured" party under the loan policy that he provided..

The poster needs to pay it ASAP to avoid additional interest and costs. But the title agent has an "insurance" responsibilty regardless.

 

[seniorjudge]

Although, technically, if the attorney wrote the mortgagor's title policy for the lender, it IS also his problem as the title agent.

AS title agent, he or his underwriter (likely he, under E&O as part of agent's agreement) has a responsibilty to put the lender in first position. THEN he has recourse to go after the borrowers for reimbursement. Yes, the borrowers are responsible, but that does not relieve his responsibilty to the "insured" party under the loan policy that he provided..

There has been no loss or damage to anyone in the scenario presented, thus no claim (that I could see).