Title Company Nightmare Closing

5 Replies

In a bad situation with title company.

We closed on a property June 3, 2015 on a REO in Baltimore City. The deed is not filed.

Here is the dilemma:

We used the seller title company, <- out of state (Never Ever Ever  again)

There was issued with the prior foreclosure deed so they could not file a deed. (3rd Week of June found this news out after hounding them.)

Cleared up foreclose dead (4th week of June)

Field complaint with BBB (cause company would not respond to or emails  (1st week of July)

Title Company had some one walk over deed over to Transfer Office

(2nd week of July)

Could not  file deed with City because Lien Cert had expired. (3rd week of July)

Monday broker called new lien certificate sent out.  We notified title company we are away and what is the status.

Company informs us today that City will not accept deed because the current taxes are due and they need to be paid.

We paid the title company money to file a deed in the city in timely fashion.  They failed to do proper research on the prior deed and therefore was set back in filing the deed in a timely fashion.

Now they say the cannot file the deed because City is requiring that the current years taxes be paid.  If they had filed the deed in timely fashion this would not be an issue.  We paid this company to record a deed showing we are owner of the property.

At this point we don't trust them.  We don't want to pay taxes for a property that is not recorded as being our property.

As this point we may pay taxes and they still not file the deed for some unforeseen circumstance.

Please advise, do I need to lawyer up.

Don't pay anything unless you are the owner of the deed. Sounds like they are wanting you to pay their taxes and not give you the deed.

you are right that is a bad situation.

If you can afford to pay the taxes then pay them, I'm assuming you aren't going to walk away from the property, and see if they record immediately.

If they don't then get your lawyer involved asap.

Thanks for responding.

It is a sticky sit.

I do want the property and I would like to pay the taxes.  I just don't trust that there are other issues lurking.

What if we pay the taxes and something comes out  the sewer.   No the taxes are paid; we are not the owner on deed.  Do we really own the property at this point.

you paid for the property and closed on it, right?? then you own it. do you think the previous owner isn't going to say that they don't own it? they have proof in the money that they received/HUD they signed that they in fact sold it. this HUD is the same HUD you signed showing you bought it.

at this point your taxes would be due anyway, and you would be paying them or losing the house in a tax sale. 

the only thing this title company should be responsible for, really, is any additional cost over and above your initial closing fees. YOUR PROPERTY TAXES ARE NOT AMONG THOSE FEES YOU SHOULD NOT BE RESPONSIBLE FOR. 

@Seth,

Don't get me wrong, I believe I owe the property taxes if I own the property.  Yes, I closed but it has been one thing after another with this title company.  Who is to say that if I pay the property taxes that there is not something else that goes wrong with trying to deed the property.  I mean the fact that they didn't  a proper research on the house in the first place which caused this long delay in the first place.

I am not trying by all means to get out paying tax.   I believe in pay taxes.

I think they should pay them and we would be happy to reimburse them.  This way we know there will not be any issue after the tax are paid.

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