Posted by David Krulac on February 05, 2003 at 17:00:42:
to be valid. you do need an attorney. in some states the first deed (yours) recorded counts, and in some other states the first deed (Dad’s)issued counts.
and don’t forget to pay those taxes or there could be a 3rd deed floating around.
David Krulac
Central Pennsylvania
Title Co. error - Posted by VJ-GA
Posted by VJ-GA on February 05, 2003 at 09:04:59:
Hi,
I was just informed that my father was able to get a loan on property that’s in my name. I met with the lender who showed me documentation of the title insurance stating the chain of title shows my father’s name. A little background: My parents owned a house and a vacant lot. In their divorce decree, my father got the house; my mom got the lot. My mom deeded the lot to my father 10 yrs ago. He never recorded it. She then deeded it to me 6 yrs ago. I recorded it immediately. 2 months later, my father got the loan on the lot.
My father is deceased and the lender wants his money. Isn’t this where the title insurance kicks in and pays for their screw up? The lender wants to foreclose, but I told him he can’t because the loan should not have been made in the first place.
Who’s responsible? Can the lender foreclose?
Re: Title Co. error - Posted by GL(ON)
Posted by GL(ON) on February 05, 2003 at 18:03:10:
Tell the lender to P*ss up a rope. They can’t foreclose on your property for a loan you never received and never signed for.
As to whether you own the property, that is another question.
You may find he did register the deed, in which case you are not the owner.
Re: Title Co. error - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on February 05, 2003 at 16:17:43:
VJ–(GA)--------------
Lawyer time. Call a local good real estate lawyer. Take what documents you have.
I’d guess–and remember that I am not an attorney–that you can’t make a claim against a title company, as you did not buy title insurance. You say that the loan to your father was recorded after you acquired the title. Thus, even if you got title insurance when you got the property, the title insurance probably does not cover the later lien.
However, the lender to your father may be able to collect what they are owed by making a claim against their title insurance, assuming they had it. Usually the lenders require a borrower to pay for title insurance for the lender. So, if they can collect from the title insurer, they should remove the lien from your property. Then you will not be responsible for that lien.
Good InvestingRon Starr
Re: Title Co. error - Posted by Kristine-CA
Posted by Kristine-CA on February 05, 2003 at 11:55:33:
VJ-GA: I cannot resist asking: why did your mother think she could deed you the property after she had already deeded it to someone else? Your father was still alive and had not recorded it. So what? What was she thinking?
Are you sure that your father never recorded the deed? Have you checked yourself that the chain of title does not, indeed, end with your father? I suspect that if the bank was satisfied with the chain of title when they loaned, that your father is the owner of record. Not that banks and title companies don’t make mistakes. They do. But I would check to make sure that your father never recorded that deed. Perhaps when he went to get the loan, his deed was recorded then. And perhaps your deed was in some way inferior.
Of course the lender can foreclose and probably will. The only thing to do is show that you have a claim and that they, in fact, don’t really have a claim to the property. You would have to make a claim against the title company, I believe. But this is why you should see a lawyer to figure out if this is worth pursuing. If it were me, the first thing I would do is check the title status myself.
Good luck getting to the bottom of this. Sincerely, Kristine
I went today… - Posted by VJ-GA
Posted by VJ-GA on February 05, 2003 at 14:23:14:
…to the courthouse to search the deeds. The only thing that came up in my father’s name is where he conveyed the property to my mother 20 yrs ago.
What was she thinking to deed it to two people? She deeded the property to him for the taxes, yet the tax bills and eventually tax liens thereafter were still in her name. She deeded it to me in exchange for the taxes.
Re: I went today… - Posted by Sean
Posted by Sean on February 05, 2003 at 20:14:52:
I would contact the title company and talk with their attorneys first. That’s what the title insurance is for. Spend their money, not yours.
Re: I went today… - Posted by Kristine-CA
Posted by Kristine-CA on February 05, 2003 at 17:12:58:
VJ-GA: thanks for the update. You brought to my attention something I’ve never thought of. Liability to the grantor when deeding property if the grantee fails to record it.
I’m still curious about what the lender saw in the chain of title when they loaned on the property. It should have been your mother’s name that was on the title, if it wasn’t yours. Maybe they assumed your parents were still married (or some other mistaken assumption).
This is what RE lawyers are for. I’ll be curious to see how this works out and what process you have to go through. Please keep us posted.
Sincerely, Kristine