We are selling our house to a cash buyer, in Plano,TX. Our title company pulled the title and it turns out when our neighbor refinanced his house in 2011, our property description was used instead of the neighbors. Therefore, his mortgage company has a lien on our property, as well as our mortgage company. We were supposed to close on our house today but that is obviously not happening until this is resolved. Both mortgage companies say the neighbor's title company is on the hook for this but what is the fastest/best way to resolve this? Do we need an attorney? Any advise would be appreciated. Has anyone ever had this happen?
@Ashley Worrell , I have had a similar situation with one of my rentals. The description of one property was used on both titles when I refinanced different properties within one month of each other. This left one property with two recorded mortgages and one with none. I discovered this when I went to refinance the property with two recorded mortgages. The two properties were ~ 1 block from each other so the property descriptions were quite similar and the amounts of the mortgages differed by only a few thousand dollars. Neither mortgage company involved would listen long enough to even recognize the problem, I contacted my pre-paid legal service and it took several tries for me to show the lawyer the problem. When they finally understood they wrote a letter to the mortgage company responsible for the error. I received a quick answer from the mortgage company's lawyer--she realized there was no lien recorded on the one property. This was involved and still took a few months to resolve. I lost the refinance opportunity and was never compensated.
It may be fastest if your title company will contact the other and point out the problem; however, it is quite likely you will need a lawyer to draft a letter in order for the responsible title company to take this seriously.
Best wishes for a quick resolution. Please share how you get it resolved when you do.
Thanks so much, Jeff! Really appreciate it!