Several files closed with the same title company and they apparently have an issue with the mortgage on the property not being to the county's standards. The county kicked back the mortgage and deed and haven't recorded it.
The Title company who issued title insurance isn't allowing me to pay off the loan internally so we can just record the deed and move on and are basically holding it hostage for the lender to resolve the issue and write some type of new mortgage. Meanwhile, i have buyers who want to close and have extended for a few weeks waiting for me to work out this problem.
Meanwhile my lender is dragging his heels along with what appears to be fully confused on what to do.
From what I gathered from the title company (first american) they collected lender's title insurance fees on the HUD and feel they have some sort of liability if they get a release for the mortgages that never were recorded. Obviously they seem to be ignoring the HUGE liability of an unrecorded deed.
I'm thinking about getting a lawyer at this point since interest/HOA fees/taxes continues to accrue and my buyers may start to walk on the various properties.
What type of mortgage?
Obviously some type of private lender. Never seen this, not sure what issue the title insurer would have in releasing the in records mtg. What was to about the mtg.makes the county not accept it, and why couldn't your lender modify their mtg agreement to meet county recording standards? Is your lender not local/used to doing business in your courny?
go to a different title co. and see if they will insure it... since its not recorded its not of record... sell to the third party and let fatco work it out.
Did the county explain what about the mortgage did not meet their standards? Might be formatting (they want margins on the paper of certain size and other things), might be the date of the notary expiration or placement of the notary info (or lack of notary being used), might be they want to see a POA. Might be something else ...
@Steve Babiak State of Washington is fanatic over not putting anything in the margins and will kick your doc's back.. but its usually a quick fix.
this one sounds like FAtco may have just messed up an did not record it for some reason.
title co should defiantly step up here though and fix it post haste
I own an abstracting company in Maryland and have recorded documents for clients for 26 years now. Easily over 100,000. I have never heard of such a thing. I realize you are in FL which may change the mechanics of how one actually records a Deed or Deed of Trust but not the laws that dictate whether or not it can be recorded. A very good question as presented above is what kind of mortgage is it. Regardless, if there was a problem with the legality of the documents, this should have been discovered long before it settled and went to record. If the county kicked it back, the title company has an immediate obligation to resolve the problem. After all, they settled it! If you purchased title insurance and there's lenders insurance it would appear that you have a claim. Go over the head of the title company and find the council for the underwriter. There is a time frame in which the title company and it's vendors have to get you documents "of record". You are correct, it is a huge liability that increases daily. First American knows this! Good Luck.
This happened in multiple states, it was a line of credit mortgage that apparently looks like we borrowed the credit limit of the line per asset. So various counties kicked back the mortgage and deed claiming they wanted doc stamps on the entire line potential per property.
Was a private hedge fund like blackstone that did the "line of credit". They were somewhat new to the game but i was able to find multiple other deals within florida alone that they have done.
Worked it out.... We just removed these properties from the line.
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