Our mortgage co. is suing our title co. A simple clerical error 2 years ago created this mess. We did not know about it until we were trying to sell out. I can not get anywhere with anyone concerning this matter. We just need to sell both of our properties due to health issues and now the property that we have a clear title on has been mixed up with the one that is supposed to be mortgaged. If that's the case, I'd rather default and save thousands since it is "legally" recorded wrong, I'm told I can't do that. I'm told we can't sell, just keep making the payment! No attny (so far) will touch this! I feel like we need a lawyer, I want to sue the title company since they have given me such a hard time since this "error" was brought to their attention almost a year ago. I don't know what to do. Advice anyone?

What's the title co. saying? Are they claiming there is no error? If they're admitting to the error, what are they offering to do and when? What, in general, are they saying about it?

The title company attempted to correct the error nearly a year ago, at that time the mortgage co wouldn't budge, and were rude, so in turn the title co delayed doing what they had to do to resolve this. Yes, the president of the title company said he holds himself personally responsible and that he "highlighted" the wrong property himself.. what are they offering? Nothing! Actually about 6 months ago, he advised me to "sell the rental property, if it wasn't enough to pay off our mortgage, then take out a second mortgage to clear this mess up...or he could see himself in the middle of litigation" That's when I knew for sure he didn't know what he was doing.

The issue appears to be that the tittle company errored and included both properties in the mortgage, this the mortgage company of course does not want to let go of both properties, since they now on paper have a lien.

But it should be simple, at least in my mind, if you get a contract and sell one of the properties, for more than the mortgage, you merely pay off the motage at closing, it will pay off the complete motage and the mortgage company will then have to release both properties.

And the only reason an attorney is not taking this, is most likely you want one to do it on a percentage not just pay them a hourly rate to do it.

The title company needs to be sued and a suit to clear the title to the other proper due to the error. The tittle company carries insurance just for this reason ( or should)

Go and hire a real estate attoreny who will sue the right people and file the right motions for you.

Thank you for your response. The mortgage co actually has only one property, and it's the wrong one, this is what they told me themselves, saying that 'legally' our place is free and clear and the mortgage is on the other place, (the one I have the clear certificate of title on). That's why they are so upset, it's only worth 1/2 of what they mortgaged our place we live in for. No money or payment has been mentioned by attorneys, except one did say he would love to handle this one at no charge to us, but this case was over way over his head. Attorney Generals' office, Dept. of Insurance Commissioner and the Real Estate Commissioner for the state all have been contacted this afternoon... and then they referred me to an attorney. We'll have to wait for his response.

Sorry I misunderstood what you were saying, This is a very serious, and in general you have a excellent case,

My attny said we don't have a reason to pursue it legally, it's between the title co. and the mortgage co. BUT... another twist. My husband's nephew signed a quit claim deed after his dad died, several years ago. Now that all the family is gone except my husband, the attny said the nephew will re-inherit half of what he had quit claimed! Do either of these things sound correct to anyone... because it sure doesn't sound logical?

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Originally Posted by tnturmoil

My attny said we don't have a reason to pursue it legally, it's between the title co. and the mortgage co. BUT...another twist. My husband's nephew signed a quit claim deed after his dad died, several years ago. Now that all the family is gone except my husband, the attny said the nephew will re-inherit half of what he had quit claimed! Do either of these things sound correct to anyone...because it sure doesn't sound logical?

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Quit Claim Deed: You are not providing enough facts in order for anyone to give you an opinion. The nephew signed a quit claim giving the property to whom? When the last person having ownership died, did the deceased will the property back to the nephew? Was the nephew the deceased last living relative and there was no will? Please provide details when asking a question. It will get you a more complete answer.

OK, You took out a mortgage on Property A, however, the lien was posted against Property B by the Title company in error. Property B was free and clear but now has a lien against it for almost twice its value. Property A doesn't have any encumbrances against it. To complicate matters you have an insurance policy on Property B showing clear title.

Do you have a statement, in writing, from the Title company that they made this error?

It really sounds to me like the mortgage company and the title company are having a spat and you are the only one suffering since its blocking you from selling the property. I think you need to sue them both to force them to clear this up.

You're exactly right. The title co. made a (simple) clerical error, mortgage co refused to authorize them to make the correction. Why? Nobody can tell us. Yes, we are suffering miserably through all this... I can't find a lawyer who thinks we have anything to complain about. As far as the quit claim thing goes, my husband is the only one living, besides the nephew who did the quit claim. The grandfathers will states everything was to go to me & my husband and to care for them as long as they were alive. I assumed all their bills, tried to do everything right. The grandmother didn't have a valid will, but they let it be well known the nephew (their only grandchild) was not included. Totally honest, he was very abusive to the grandparents until we put our home near theirs to care for them for the last 12 years of their lives. This is all such a mess.