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Updated almost 4 years ago,
Mortgage company failed to record our deed, What should we do?
I used a hard money loan to purchase a home, rehab, and sell a few years back under an LLC. I later decided to keep the home and refinanced out of the LLC into my personal name using conventional financing.
A few months ago I decided to do a refinance to take advantage of the current decrease in interest rates. When the current title company did a title search they found that the title was still held in the LLC and not in my personal name as it should be. I do not have owners title insurance, however, I did purchase lenders title insurance.
I have been advised to allow the lender to file a claim against the title insurance instead of personally paying the cost to have the deed recorded.
My questions:
1. Should the title company who failed to record our deed be responsible for the cost of recording the deed now?
2. Will the Lenders title insurance policy cover this error?
3. Is the title company at fault, is the lender at fault, or am I to be held responsible in this matter? (there is an email from the Lenders underwriter directing them to place the title in my name and not leave it in the LLC)
4. What would you recommend I do in this situation? How?
Thank you for all help!