Title Insurance

[Upen Mody]

Hi -- I made a hard money loan that ballooned in 12 months.  We are 5 months past the 12 month mark and have  not signed any paperwork. The borrower has been making monthly payments on time. 

My lawyer is saying that the title insurance is not valid anymore and if there are any issues I'm not covered any more. Her perspective is the extension needs to be singed and title work needs to be redone. 

I get signing the extension paperwork but I don't understand what title work has to be redone. Why is the title policy not valid any more? The original title policy was not bought for 12 month period and why is it not valid anymore when the note balloons?

Would really appreciate insight from experienced investors.

Thanks,

Upen