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  1. #1
    Join Date
    Nov 2019
    Posts
    29

    Default Title Issue

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

    I just discovered that a security deed was cancelled releasing my property to another owner two years after I refinanced. Further there was a lis pendens on the property when I first purchased it that I wasn't told about that was released after my purchase.

    I purchased the home in 2005 with ex who I divorced in 2007 and refinanced the home in my name with Countrwide. In order to close, I had to use the same closing attorney and I never understood why. My loan was part of a pool of loans in the Countrywide Settlement with Fannie Mae. I was told that I didn't need title insurance and have none.

    If I purchased a home that I didn't have clear title to, I would have to file a lawsuit to have the cloud removed correct? Who can I or should I hold responsible for this. Would this be affirmative misconduct on Fannie Mae's part since they are the assign? Is the mortgage note and deed even valid?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,476

    Default Re: Title Issue

    As one of the other forum members likes to say "I was told..." is perhaps the most dangerous principle in the law.

    You are ALWAYS free to get your own attorney.
    Any transfer of ownership recommends an owner's title policy. Generally, a refi itself doesn't because there's no change in ownership. However, when you have issues like removing owners (your ex), it may be advisable.

    You need to provide more information on "security deed...to another owner." Where was this in the chain of title? Who was the "other owner?"
    A lis pendens isn't a defect in the title, but warns you that there may become one. This should have been removed when whatever lawsuit that was pending was resolved. This one should be easy to solve (provided the suit isn't still pending).

    Did you EVER have owner's title insurance on the property? If so, you can certainly pursue it with them. That should cover items that existed prior to your ownership.

    Without knowing the details, it's not clear what repairs need to be done to the title. Your best bet would be to take your title report to an attorney for review. If you DID have an owner's policy and this predates the issuance of that policy, then I'd certainly call the insurer first.

  3. #3
    Join Date
    Nov 2019
    Posts
    29

    Default Re: Title Issue

    Quote Quoting flyingron
    View Post
    As one of the other forum members likes to say "I was told..." is perhaps the most dangerous principle in the law.
    I understand this now but hopefully not too late.

    Quote Quoting flyingron
    View Post
    You need to provide more information on "security deed...to another owner." Where was this in the chain of title? Who was the "other owner?"
    A lis pendens isn't a defect in the title, but warns you that there may become one. This should have been removed when whatever lawsuit that was pending was resolved. This one should be easy to solve (provided the suit isn't still pending).
    If memory serves me, the Lis Pendens was released or removed in 2005 after the sale went through.

    Date Filed - Type - Parties One - Parties Two
    08/27/1998 - SD - FIRST OWNER - MORTGAGE INVESTORS CORP * Deed cancellation 6/3/2005
    04/08/2002 - WD - FIRST OWNER - EP LAND TRUST
    04/08/2002 - SD - EP LAND TRUST - FIRST OWNER
    04/22/2004 - LP - LAWSUIT - FIRST OWNER & BANK . - LIFE INSURANCE COMPANY
    06/14/2004 - SD - EP LAND TRUST - EQUITY TRUST/INDIVIDUAL IRA * Deed cancellation filed on 2/2008. In Georgia must be filed within 60 days.
    05/24/2005 - WD - EP LAND TRUST - MYSELF AND EX
    05/24/2005 - SD - MYSELF AND EX - MERS/FIRST HOME LOAN
    07/10/2007 - QCD - EX - MYSELF
    07/24/2007 - SD - MYSELF MER/COUNTRYWIDE

    Quote Quoting flyingron
    View Post
    Did you EVER have owner's title insurance on the property? If so, you can certainly pursue it with them. That should cover items that existed prior to your ownership.
    No. Could this EP Land trust come back and say they own this property? The cancellation is not dated and they marked out the state and county and hand wrote over it with a county in Ohio.

    To satisfy my curiosity, the most recent assignment to my current servicer is not appearing under property records but under my name search. Is that common? Also, it was not assigned until six years after it was transferred. Interestingly enough, the current servicer also settled with BANA over issues with their purchase of the MSR.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,476

    Default Re: Title Issue

    A "servicer" is just the people who process the payments. The question is who holds the loan. But no, when the mortgage is sold, the security instrument isn't usually changed.

    I'm still curious, why did you close on a property without getting the prior security released AT THE TIME?

  5. #5
    Join Date
    Nov 2019
    Posts
    29

    Default Re: Title Issue

    Quote Quoting flyingron
    View Post
    A "servicer" is just the people who process the payments. The question is who holds the loan. But no, when the mortgage is sold, the security instrument isn't usually changed.

    I'm still curious, why did you close on a property without getting the prior security released AT THE TIME?
    Fannie Mae should hold the loan. I didn't know about the prior security. I said I was stupid and apparently the closing attorney was not upfront with me about any of this.

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