I've bought my house 5 years ago and now I'm in the process to refinance.
When the tittle company did the search they found out that there is a lien on my house from the previous owner.
Basically the previous owner had two mortgages on his house, but when we bought, it only appeared one of them because the second mortgage wasn't registered. This second mortgage was only registered by the bank 5 years later, which is last year, when the house was already mine for 4 1/2 years.
Clearly the bank made a mistake and now I'm paying 90/days to hold the interest rate in order to have it removed by the bank.
The laywer that is doing the closing had sent a letter to the legal department on the bank, but it may take a month and they are not sure if they will reimburse me for the lock extension that I have to pay daily plus her attorney fees doing the follow up and letter.
Do I have a case to pursuit a lawsuit against the bank? It's been very stressfull and time consuming especially in time of crises. In case I have a case for a lawsuit, do I have to end up paying the attorney costs?
Thanks

What does the Attorney you've hired to straighten this out have to say about it?

I didn't hire a lawyer for this case, she is the one that was doing the refinance of my house.
But she believes that I won't be able to get much back and end up paying a higher fee for a lawyer to pursuit this lawsuit.
I'm really mad because my husband and I have to take off to be fixing a mistake the bank made and paying for it as well.
Thanks

Well, if an Attorney familiar with the situation doesn't think it's worth the time and trouble, then I would go with that suggestion BUT you can ALWAYS sue in Small Claims Court for what you are out of pocket. It's fairly inexpensive, you can represent yourself, you just might prevail.

... when we bought, it only appeared one of them because the second mortgage wasn't registered. This second mortgage was only registered by the bank 5 years later, which is last year, when the house was already mine for 4 1/2 years.
Clearly the bank made a mistake

Yes, so it appears. However the bank is the victim of the mistake, not you or your buyer.

If a mortgage creditor fails to record its mortgage before a subsequent bona fide purchaser for value records, the mortgage is simply ineffective against the BFP. End of discussion.



...
they are not sure if they will reimburse me for the lock extension that I have to pay daily plus her attorney fees doing the follow up and letter.
I really question whether you should be responsible for your buyer's attorney fees, but I suppose it is a matter of the fine print in the agreement you have with your buyer.
I suggest you get your own attorney to review this to see. The buyer's attorney is not going to properly advise you on this question.


...
Do I have a case to pursuit a lawsuit against the bank? It's been very stressfull and time consuming especially in time of crises. I don't think so, as I said before. I don't think a mortgagee has a responsibility to determine, at the instant it records the mortgage, whether the mortgagor still owns the property.


... In case I have a case for a lawsuit, do I have to end up paying the attorney costs?

No. In most states, in most cases a successful plaintiff pays his/her own attorney fees.