Q: Title company missed mortgage on house and sent us the check. Can we just not pay mortgage?
Hi, we sold a home that is in an open estate. The home has a mortgage. The title company missed the mortgage and sent the check to the executor of the estate.
An acquaintance of ours told us not to pay off the mortgage at this point, that the title insurance will have to pay off the loan.
Is this true? If the title company pays off the bank, can the title company come after us/the estate to recoup their loss? Thanks for any help.
A: The title company can, and no doubt, will come after you for payment.
1 user found this answer helpful
A:
I have been down this road on the part of the buyer. Here is what is going to happen:
1. Title company asks for money back to pay mortgage.
2. You refuse.
3. Title company provides a title claim to the title underwriter.
4. Title underwriter attorney sends you a demand letter
5. Title underwriter sues you for the money
6. Title underwriter seeks emergency injunction against you freezing your bank account
7 Title company gets a judgment against you including attorney fees (to which they are entitled because you breached the warranty of title in the deed not to mention other closing documents ou signed).
8. Your life becomes miserable.
So make your decision carefully............
1 user found this answer helpful
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