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Did Not Receive SAT/Title Co. Wants 20K

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C

cdwrites

Junior Member
What is the name of your state?What is the name of your state? New York
I posted my case a few days ago. We are selling our home and recently found out that a 2nd mortgage on our house that was satisfied in 2002 is still recorded on the title. It was never released and the person who gave it (my husband's grandmother) is dead and her only beneficiary is also dead so there is no one left to sign. Our attorney never pursued the release of the mortgage when he should have taken care of 2 years ago. We were told by our attny that everything was fine since the terms of the mortgage are that it satisfied when grandma died. However, now we find ourselves in an awful situation since the title company, called Stewart, that our buyers are using, will let us close but only if we put 20K in escrow. In addition to that, they want a note from our attny that he is responsible for the amount of the mortgage if he doesn't settle this in surrogate's court. They want 20K and a court recorded discharge of the mortgage, which will take months. MY QUES: How do we know we will get our 20K in escrow back, even after our attny finally takes care of this in court? Can they touch the escrow money? We're told the money is there in case our attny doesn't handle the problem and they need the money for legal fees to take care of it. We don't trust anyone, not even our attny anymore since he didn't take care of this and has put us in this situation. We don't even have the 20K for escrow. We will have to borrow more money on the mortgage for the new house we're buying.
This is so stressful. :( Please help. We need advice.
 


S

seniorjudge

Guest
cdwrites said:
What is the name of your state?What is the name of your state? New York
I posted my case a few days ago. We are selling our home and recently found out that a 2nd mortgage on our house that was satisfied in 2002 is still recorded on the title. It was never released and the person who gave it (my husband's grandmother) is dead and her only beneficiary is also dead so there is no one left to sign. Our attorney never pursued the release of the mortgage when he should have taken care of 2 years ago. We were told by our attny that everything was fine since the terms of the mortgage are that it satisfied when grandma died. However, now we find ourselves in an awful situation since the title company, called Stewart, that our buyers are using, will let us close but only if we put 20K in escrow. In addition to that, they want a note from our attny that he is responsible for the amount of the mortgage if he doesn't settle this in surrogate's court. They want 20K and a court recorded discharge of the mortgage, which will take months. MY QUES: How do we know we will get our 20K in escrow back, even after our attny finally takes care of this in court? Can they touch the escrow money? We're told the money is there in case our attny doesn't handle the problem and they need the money for legal fees to take care of it. We don't trust anyone, not even our attny anymore since he didn't take care of this and has put us in this situation. We don't even have the 20K for escrow. We will have to borrow more money on the mortgage for the new house we're buying.
This is so stressful. :( Please help. We need advice.
Click to expand...

https://forum.freeadvice.com/showthread.php?t=220112

I guess you changed your facts.

Okay, you will either have to pay off the lien or put the dough in escrow.

Your choice.
 
C

cdwrites

Junior Member
No, The FACTs haven't changed. The buyers want to use their title company (not the company that our attny would like to use and would insure title) and the buyers' title company wants 20K in escrow. WE DON't HAVE A LIEN. We paid off the second mortgage and it was satisfied in 2002. WE DON"T OWE ANY MONEY, ABSOLUTELY ZERO. There's nothing to pay off. Our problem is that our attny never followed through with the release of the mortgage and then another person died. However, if we give the buyers' title co. 20K in escrow for this deal to go through, my question is HOW DO WE KNOW IF WE'LL EVER SEE OUR MONEY AGAIN once our attorney has gone to surrogate's court and filed and receives the court discharge satisfaction of mortgage? We have a lot at stake since we're buying another home and have a large down payment on that home. We also have superb credit, we pay all of our bills, all of the time, exactly on time. Another question: WHY ISN"T ANYONE LIABLE FOR THIS MESS UP, for example, our attorney who didn't get this taken care of when he should have?
 
S

seniorjudge

Guest
Keep all your questions in one thread. Old judges become confused easily.

The buyers want to use their title company (not the company that our attny would like to use and would insure title) and the buyers' title company wants 20K in escrow.
I don't know what kind of contract you have with the buyer, but if you could, I would tell them the deal is that they use your title company or no sale.

WE DON't HAVE A LIEN.
Yes, you do. As long as it's of record, then there's a lien; you may not owe anything on it but it's a lien and screwing up your title.

Our problem is that our attny never followed through with the release of the mortgage and then another person died.
I would have a strongly-worded (but nice) talk with this lawyer. How could he let this slip by?

HOW DO WE KNOW IF WE'LL EVER SEE OUR MONEY AGAIN once our attorney has gone to surrogate's court and filed and receives the court discharge satisfaction of mortgage?
If the escrow is with the title company, you will get your money. There was a major title company that just failed in Missouri, leaving 20 million $ outstanding, but the title insurance company they were writing for is paying every penny. Make danged sure you get a rock solid escrow agreement that protects you in every way.

WHY ISN"T ANYONE LIABLE FOR THIS MESS UP, for example, our attorney who didn't get this taken care of when he should have?
So far, you have not been damaged. Major irritation, yes, but no damages. Make sure that you do not get damaged.

I'd get another lawyer, if it were me. Your choice.
 
C

cdwrites

Junior Member
Great idea. He's fired! :)
Thanks a lot for your advice about the escrow. It makes me less nervous to know that with a rock solid escrow agreement, we'll get out money back. I wish we could tell them to just use our title company or no deal but they might just say no deal and if we lose the deal with them we might be in worse shape since we need the money from the sale of this house for the house we're buying and need to close on by March 1.
 
C

cdwrites

Junior Member
Me again. I haven't fired my attny yet. I'm afraid to do it at this point in the game since it's his name on the contract for the sale of my house and his name on the contract for the purchase of the new house. Also, it's his fault for not taking care of this problem in 2002 and I feel like he should get it taken care of it. On the other hand, I'm really afraid that I will be living in stress for a long time because I don't know how to force the guy to go to court and get this taken care of. We need a court to appoint a new administrator for grandma's estate and that person would sign the release for satisfaction of mortgage since her and her only bene. are dead. OK, here's my question: CAN I REALLY FIRE MY ATTNY and HIRE ANOTHER ATTNY I ALREADY CONSULTED WITH? How do I do this without botching up the deal? We need to sell our house and close ASAP. Wouldn't we need to do another house contract with the new lawyer and everyone would have to sign it again? OR, DO I JUST STICK WITH HIM FOR THE CLOSING and THEN, HIRE THE OTHER ATTORNEY TO TAKE CARE OF THE COURT DISCHARGE? Thanks for your advice. Stressed out beyond belief and can't take another day of this.
 
S

seniorjudge

Guest
If you don't like/trust your attorney, then fire him.

If you do like/trust your attorney, then keep him.

You choose.
 
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