Quote:
Originally Posted by Challenger
When you bought this home, did you buy OWNERS Title ins? In the subsequent refis -- same question? Sounds like many of your issues would have been the responsibility of the title co (at their costs).
... Take the owners policy.
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Very good advice however we’ve always had title insurance -- it’s not optional the banks require it.
Title company clears title retrospectively – not prospectively. If a filing is done improperly after the mortgage is issued no one knows until the next transaction when a new title insurance company looks back at the title chain. My successful claim on Bank of America was for a refi that occurred in 2002! And Bank of America’s improper discharge of the mortgage created a tax liability not a challenge to our ownership nor a claim/lien against the title so the company has no liability. Despite this, and understandably, buyer’s title company wants the chain corrected.
The 2nd problem, unrelated to the above, is nothing we could have predicted nor prevented since we had nothing to do with the transaction. Chase bought our mortgage from Staten Island Bank but neither filed an assignment so technically we are listed as currently having both mortgages open on NYC’s books. It is an administrative step that was overlooked (I don’t know which bank is responsible). Staten Island has not come after us since they have their money and there is no lien or credit report issue, so there is no title insurance company liability. We were not aware that there was a problem until we went into the sales contract. The buyer’s new title insurance company wants everything cleared up before they will insure. I can’t say I blame them nor do I want this sword of Damocles hanging over our heads.