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lsualum01
LSU Fan
Member since Sep 2008
1510 posts

Title issues on home refi
So I bought a home in 2012. I decided to refi about a month ago because I was able to remove PMI and lower my rate. While trying to get the refinance taken care of, I ran into some issues with the title. Apparently, the title company I used during the original purchase failed to properly record the purchase with the clerk of courts. From what I understand, the previous owners were still listed on the title. The title company I am using for the refi had been hounding the original company to get them to take care of it or provide a hold harmless agreement. Well, the first title company said they didnt have the paperwork on file and needed to retrieve it from wherever they store their files. They finally have provided a hold harmless agreement but now I am having to pay $600 to extend the rate lock so I do not lose the low interest rate. I've called, and emailed asking to speak to someone about being reimbursed the recording fees I paid and the rate lock extension because they didn't do their job and drug their feet trying to fix it but I have not recieved a response. Am I legally entitled to be reimbursed these fees? Small claims court seems to be my only option because of the amount only being $800. TIA for any help.


eng08
LSU Fan
Member since Jan 2013
3944 posts

re: Title issues on home refi
Get title insurance with the first closing?

I think you should be able to File against their insurance for reimbursement and any additional fees your title co has.


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LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
17364 posts

re: Title issues on home refi
I don't know if title insurance would kick in here... but certainly I would think you have a case against the original company and their Errors and Omission insurance / malpractice insurance.


ConfusedHawgInMO
Arkansas Fan
Member since Apr 2014
1607 posts

re: Title issues on home refi
Side note -- have you been paying taxes on the house? If so I don't see how you have been billed for real estate taxes when they don't show you even own the place. Something doesn't make sense to me.


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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
24555 posts
 Online 

re: Title issues on home refi
quote:

I don't know if title insurance would kick in here


Yeah this is included in every policy to my knowledge. I'd be calling the underwriting and starting a claim ASAP. I'd also expect that other title company to compensate me for the rate lock extension.


Ham Malone
Arkansas Fan
Denver
Member since Nov 2010
2098 posts

re: Title issues on home refi
Definitely get the underwriter of your title insurance policy involved, a title company that makes a basic error like that isn’t going to go out of their way to help you but if you file a claim they’ll take you seriously.


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Neauxla_Tiger
LSU Fan
Member since Feb 2015
1104 posts

re: Title issues on home refi
quote:

a title company that makes a basic error like that isn’t going to go out of their way to help you


I would hope they'd be scrambling to fix this. Not recording the sale is a huge mistake, not basic error IMO. What if the old owner got into financial trouble and got judgments and liens filed against him, which would now be attached to the house. Also, if the old owner is aware of the mistake and is a terrible person they could have tried to quitclaim to another person, take out another mortgage, etc. (Not that it would be easy to do that, but still it presents a big risk). They should be crapping their pants .

It's weird though that your old mortgage company never asked the title company to provide them the recorded deed. And you would've needed the recorded deed to apply for homestead exemption. Just not sure how this could have gone 7 years without anybody noticing

ETA: To answer OP, yes, I would think you're entitled to being reimbursed for what it has cost you
This post was edited on 9/19 at 10:31 am


Shankopotomus
New Orleans Saints Fan
Who Dat Shack
Member since Feb 2009
19063 posts

re: Title issues on home refi
yeah I mean, you pay title insurance - they fail to record - and it isn't covered?

that would be a racket


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Ham Malone
Arkansas Fan
Denver
Member since Nov 2010
2098 posts

re: Title issues on home refi
quote:

I would hope they'd be scrambling to fix this. Not recording the sale is a huge mistake, not basic error IMO


A basic error can also be a huge mistake

My post was to say the title company isn’t good and they probably make errors like this all the time. They’ll try and ignore it and will get away with ignoring unless OP makes a claim.


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Stuckinthe90s
LSU Fan
Dallas, TX
Member since Apr 2013
1838 posts

re: Title issues on home refi
I must be missing something here, but with the fed lowering rates yesterday, wouldn't you probably be getting a lower rate anyways? If so, dont extend, just lock in a new rate.


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lsualum01
LSU Fan
Member since Sep 2008
1510 posts

re: Title issues on home refi
So, I got busy and forgot to update the thread. I called and left messages and sent emails last week and didn't get a response, which is why I started the thread. Finally, on Friday the title company called and agreed to reimburse me for the rate lock extension. I had already agreed to pay the rate lock extension before the rates dropped again. I am getting a 3.25 on a 30 year so I am happy with it. They apologized and agreed to make sure the original loan was closed out and recorded and agreed to provide the written proof after it was complete. The weird part about it is that I had recently opened a heloc and the bank didn't discover the issue either, which baffled them as well.


rmc
LSU Fan
Zachary, LA
Member since Sep 2004
24555 posts
 Online 

re: Title issues on home refi
I am trying to think exactly how you make that mistake and don’t catch it when you issue policies as a title insurance agent. Not having a recorded act of conveyance on a transaction like that would throw up a red flag on the back end before issuing the policy. Or it should.


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