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bluejay72
Guest
My grandmother sold her house in April and the title company still has half of her proceeds. There was an unreleased trust that they were aware of well ahead of the anticipated closing date, but they failed to clear it up in time. Regardless, they conducted the settlement and told my grandmother they would have the release taken care of within a week or so. They knew she could not provide them with a paid and canceled Note or any other documentation that the mortgage was paid in full. It had been paid off so long ago that she couldn't even remember if it was in the late 80s or early 90s. She's 80 years old, and they knew she would not be able to provide any help in getting the lien released. I used to work for a title company here in Maryland, and our policy was always to clear up unreleased trusts PRIOR to settlement. In the rare instance that something slipped through, we always made sure it was taken care of promptly. In the case of an unreleased trust, we would work with the bank to get them to send us a certificate of satisfaction to send to the county, and sometimes we would even prepare the document and send it to them for their signature. Otherwise, we'd get the office attorney to work with the title insurance company to issue a letter of indemnity. Whatever the problem, it was never permitted to drag on this long. In addition to not having the approximate $80,000.00 she is entitled to, she is losing hundreds of dollars in interest each month. Bottom line is without clear title, the title company should not have conducted closing. What can she do to get her money and the interest that has accrued? The attorney for the title company has been very nasty and told her she would have to pay $7,000.00 for a lost note bond. I have never heard of such a thing. Shouldn't the attorney be liable for conducting a purchase settlement without first obtaining clear title? Like I said, I've worked in the business, but I never witnessed anything like this and don't know who she can report this to or if she just needs to get an attorney. If she is forced to get an attorney, can she then sue for attorney fees? I desperately want to help her. She's 80 years old and can't handle this stress. She's been a mess for two months now, and it has the whole family upset. Any information/advice would be GREATLY appreciated. Thank you.