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Faulty Discharge on a Title Search

Discussion in 'Off-Topic' started by kman, Jan 3, 2019.

  1. kman

    kman NES Member

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    So selling my house and I just got a call from a title company doing the title search on my sale. She tells me that in 2008 my loan was sold to another bank and when I refinanced in 2010, they did a "faulty discharge" to the wrong bank. Apparently, the first bank needs to be discharged as well? Apparently this is a pain in the ass and will take weeks to fix. I immediately called the lawyers from the 2010 refi. They said they would look into it. Should I worry?
     
    Last edited: Jan 3, 2019

  2. enbloc

    enbloc NES Life Member NES Member

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    Damn Somalians...
     
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  3. kman

    kman NES Member

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    ldi and enbloc like this.
  4. snax

    snax NES Member

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    Depends on the bank.
    Are they still in business?
     
  5. Rob Boudrie

    Rob Boudrie NES Member

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    Faulty discharge?
    You load was sold?
    I'm not going anywhere with this one.
     
  6. kman

    kman NES Member

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    Yes, they are still in business.

    The title search lady seemed to say the lawyers screwed up the first by putting the wrong bank in and then screwed up again when I refinanced in 2013. Apparently the 2013 refinance title search missed it.
     
  7. kman

    kman NES Member

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    Bad finger control...
     
  8. drgrant

    drgrant Moderator NES Member

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    Best typo on NES of 2019 so far...

    -Mike
     
  9. JayMcB

    JayMcB NES Member

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    If they missed it, they own it. You should have a title policy to cover this, but it may delay your sale/closing
     
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  10. ISOTOX

    ISOTOX NES Member

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    Sorry no advice to give...all I can say is sorry for your pain. Banks and lawyers suck!
     
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  11. Quiggy

    Quiggy NES Member

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    Similar situation for my wife a few years ago. Have "your" lawyer put pressure on the 2010 lawyers. They have no incentive to help you. It can be fixed fairly quickly when it becomes a priority for the right lawyer. Good luck.
     
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  12. kman

    kman NES Member

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    Mike, you clearly modified my text. lol
     
  13. drgrant

    drgrant Moderator NES Member

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    lol I just caught it before you edited it. [laugh]
     
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  14. JJ4

    JJ4 NES Member

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    This. The old lawyers already have your money from years ago and will not be getting any more of your money. So "we'll look into it" is not a priority to them and they might get to it eventually. You or your current lawyers should be telling them "this needs to be fixed tomorrow".
     
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  15. FPrice

    FPrice Retired Zoomie NES Life Member NES Member

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    I guess this is just one more example why people need to double-check any such transactions to insure that the proper people get paid off to prevent you from having problems down the line.

    The bank that did get paid should have known or been able to figure out that they did not deserve the money they received.
     
  16. CrackPot

    CrackPot NES Member

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    Do you have owners title insurance? If yes, call them and tell them to fix it. If not, think about getting it next time.

    I cant imagine buying a home in the north east without owners title. Mine already paid for itself when during a refi they found out the original closing did not close out the previous owners loan correctly. That was like 15 years and 5 refis later, but they finally noticed.
     
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  17. bottle-cap

    bottle-cap NES Member

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    Similar thing happened to me years back on HELOC refi. Turns out, the lawyer never filed the discharge papers with registry of deeds even though we had itemized bill showing we paid $75 to them to to so. Took few extra weeks to get bank to regenerate the discharge and get papers to me. Went to registry myself that time. New Bank would not proceed until then.
    Good luck.
     
  18. szaino

    szaino

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    This is not unusual and I have have had to chase down the right party at the first bank to get them to issue a discharge. It must be an original doc sent to the closing atty who will usually record it (just before) at the same time as all the other closing docs. Your buyers' lender may insist that it is recorded ahead of time before they will issue the closing docs to the closing atty.

    Put the refi atty on notice in writing (email is fine) and tell then that this is jeopardizing the timely sale of your home. They are responsible to clear this.

    It is simply a question of someone working on this and getting to the correct person at the bank who can research the loan and see that the loan was paid in full and closed and then they will issue the discharge. Make sure they have instructions to overnight the discharge. Once you get to the correct person, it may take a couple of days to get the discharge.
     
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  19. kman

    kman NES Member

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    I don't think that is exactly the problem. As I understand it, the loan was shifting to the other bank and that bank loan was paid off in 2010. The wrong bank was discharged though. I think the second bank was discharged and it should have been the first. I think they need a letter now from bank 1 stating there is no issue.

    Anywho, I called my real estate lawyer from a few years ago to get him onto this. He was the one who saved me from a contractor who hired a dumpster guy to bring a dumpster to my place, which he then used to fill up with stuff from other jobs. After I fired him, the 6'6'' tall dumpster guy showed up weeks later wanting to be paid and with late fees on top. Only, I never hired him and most of the stuff in the dumpster wasn't even mine! But I digress...
     
  20. dingbat

    dingbat NES Member

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    When we sold our house in western MA we found out the town had a lean on the house from the previous owner that had been missed when we bought it. Our seller's agent took care of all the running it down and in the end, the attorney who represented us when we bought took care of it through his insurance as missing it was on him and his practice.
     
  21. George D

    George D NES Member

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    Pretty common. If all the players are still in business, it should be fixed in a week or so.
     
  22. GM-GUY

    GM-GUY NES Member

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    Owners/Buyers Title Insurance covers you from someone else's screwup malfeasance. The next time you are at a closing table, realize you are dealing with bankers & lawyers - do you really trust them?

    I had this happen on a mortgage I paid off (10yrs previous) - and the bank had been bought by another then that entity was sucked into one of the 5 big banks, it got cleared up - but it sucked.
     
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  23. Rob Boudrie

    Rob Boudrie NES Member

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    I had a similar experience with a car non-loan. I paid cash for a car and the title came back with the bank upon which the bank check was drawn listed as the lienholder. The bank was most helpful in straightening it out.
     
  24. Dennis in MA

    Dennis in MA NES Member

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    Oh gosh. Back in the banking crisis of 87, my dad had a mortgage with some bank that went under. The loan was sold 3 more times. Dealing with the ultimate bank was an exercise in disaster b/c their paperwork was terrible and they didn't know asses from elbows.

    When he finally paid it off, it took a lawyer a goodly amount of time to get it discharged because of the disaster. This was BEFORE the paperwork disasters that plagued 2007. Sometimes, people don't learn.
     
  25. snax

    snax NES Member

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    Stay tuned, we may be in for a repeat in about a year.
     
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  26. AHM

    AHM NES Member

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    Beware that the bank loaning you money will only be interested in whether the value of the title insurance policy covers the mortgage. If you don't pay extra, you likely won't be indemnified for the value of your down payment.
     
  27. rep308

    rep308 NES Member

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    A title search revealed that I had 4 unreleased holds from my 1990's refi's. Somewhere between the lawyer and the bank they messed up. I was able to contact the bank myself and three of them resolved. The other I had to hire a lawyer who used a paralegal and it ended up costing me something like $800. Since you are selling your house and no one is going to buy it unless this is fixed, I'd suggest hiring a lawyer and "a couple of weeks" is considered fast, I've spent too much time in land court.

    Top tip, have a title search done on your home prior to hiring a realtor, they cost something like $250. I've had them done on my parents house as well as I know some day I'm going to have to deal with it.
     
    Last edited: Jan 7, 2019
  28. cmcgraw2

    cmcgraw2 NES Member

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    Can't help, but I can empathize (going on a year in April) - I think it's known as "don't kill the job" in some fields.
     
  29. kman

    kman NES Member

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    I gave up trying to work this issue with the lawyers who screwed it up! They apparently sold the part of the company off and the files are in Arizona now and nothing is in an electronic format. All the paperwork from the closing is missing the ID number for them to look it up. Everything is so convenient for them. I then tried to call the big bank that needs to handle the discharge. They don't even have a phone number for you to call! I ended up paying $300 for a service to do it for me. Total joke!
     

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