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  1. #1
    Join Date
    Jul 2015
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    3

    Default Title Insurance Company's Search Missed a Lien

    My question involves real estate located in the State of: OREGON

    We refinanced our home in 2009... when the new mortgage company paid for title insurance they ONLY purchased "lenders" title insurance. In 2014 we were notified that there was a Lien on our primary home that stemmed from a rental property I owned at the time of the refi. The county Records show that the lien was recorded 9 months PRIOR to the refi. the title "search" that supposedly was done by the title company obviously MISSED the lien, and "clear" title was conveyed to the mortgage lender.
    In 2014 we received a notice from the Lien holder with their claim that "THEY" held first title to our property and NOT the mortgage lender. They proceeded to put our property into a "delinquency" status and were proceeding with an auction dated of Aug 5 2015.
    We informed our mortgage company Nationstar of the situation and for several months we have attempted to get Nationstar to exercise their right to file a Title Insurance Claim.
    To date we have heard very little other than "we are working on it"....because of Nationstar's LACK of expeditiously moving on our request...we were so threatened by the prospect of an actual foreclosure and sale of our home that we had to borrow money from relatives to satisfy the lien to stop the sale.

    QUESTION.... can WE recover some or any of the money we had to pay to satisfy the lien that the LENDER was insured for? Ticor will not speak to US about the Clouded title that they conveyed because it is NOT our title insurance, but the lender's. Can we sue NATIONSTAR for the cost because of their "inaction" on our part? Could that suit cause nationstar to finally claim the damages that were caused by the Title insurance company's FAILURE to actually search the title that they were paid to search in 2009?
    We paid $45,000 to satisfy this debt, and MUCH of that was INTEREST that was accrued ONLY because of the title failure. The contention we have is that had the title search found the lien back in 2009 it would have had to have been cleared at the time of the refi. Thus that Interest was in fact allowed to accrue because of the failure of Ticor.

    HELP ME.......
    thanks
    Sam

  2. #2
    Join Date
    Sep 2010
    Posts
    19,147

    Default Re: Title Search Missed Lien

    The lender's policy only protects the lender's interest. You have no standing to get anything out of them or the bank. The lien is your problem.

  3. #3
    Join Date
    Nov 2013
    Posts
    6,338

    Default Re: Title Search Missed Lien

    And what about your failure to pay the debt that the lien was based on?

    One way or the other, you owed the money. The interest is the consequences of not paying the debt back in 2009.

    Why do you think Nationstar is responsible for it?

    You should have spoken with an attorney when you were notified of the sale. The sale could have been postponed giving more time to the lender to file a claim. Now that you have paid off the lien, there is no reason for the lender to pursue any claim.

    - - - Updated - - -

    Quote Quoting flyingron
    View Post
    The lender's policy only protects the lender's interest. .

    I think the lender's interest was affected by making their mortgage junior lien.

  4. #4
    Join Date
    Jul 2015
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    3

    Default Re: Title Insurance Company's Search Missed a Lien

    The... lien that was on our house was incurred after a bankruptcy in 2010....my point is that the title insurance company failed to search the title records at all. had they searched the title as they were paid to ...this lien would have been cleared prior to the refinance in 2009...the title was in jeopardy and the house was scheduled to be sold despite nations stars contention that they held first deed. indeed they did not Hold first deed...because they did not have a clear title. Ticor conveyed a clouded title.my contention is that nation star could have filed a claim to clear up this situation very easily but because of theirlack of expediency... We were forced to pay cash to clear the title our selves. regardless of whether or not it was our debt....we should not have had to pay for interest that was incurred and accrued because the lack of disclosure that allowed the interest to accrue.the original amount owed was only $15,000. back in 2010. that amount was in dispute to begin with. we could have paid the debt back down as part of the refinance of the house if tIcor had actually done their job at the time of closing . my dispute is that the $30,000 of interest would not have accrued if Ticor had done their job for Nationstar. also we would not have had to pay this lean off if Nationstar itself would have filed a claim to protect its own rights in a timely manner.

  5. #5
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Title Insurance Company's Search Missed a Lien

    Even if the title insurance had a duty to you -- and it did not -- you weren't harmed. You owed the money.

  6. #6
    Join Date
    Sep 2010
    Posts
    19,147

    Default Re: Title Search Missed Lien

    Quote Quoting budwad
    View Post
    I think the lender's interest was affected by making their mortgage junior lien.
    But that's for the lender to complain about. Until the senior lien forecloses, they've not lost anything.

  7. #7
    Join Date
    Jul 2015
    Posts
    3

    Default Re: Title Insurance Company's Search Missed a Lien

    So ....the insurance company didn't do what they were paid to do....and this lien lay dormant accruing interest unbeknownst to me....the lien holder purposefully NOT contacting me so as to add interest so he could steal my house or money....I only owed ANY money because he slipped a lien into the contract that we didn't understand. ...then when we gave back the rental....he sat on it and sold it at a loss instead of selling it for a profit. ...then he tried to take my home also....he's a scumbag and so are the kind of lawyers that helped him to try to steal our home....

  8. #8
    Join Date
    Sep 2010
    Posts
    19,147

    Default Re: Title Insurance Company's Search Missed a Lien

    Again, the title insurance has no DUTY to you. It's up to the bank to decide if the lien is something they care enough about to pursue against the title insurer. Neither the search nor the resulting warranty is for your benefit.

    Note that even if you had an owner's policy, it's not going to necessarily just pay off your debt. The coverage comes in only to protect the title when someone is threatening loss of use (i.e., foreclosure against you) or marketability (you aren't able to sell the house due to the lien).

    There's no magic bullet here. Even if the lien was somehow removed, you're still responsible for your debts.

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