Is this a title insurance issue?

[Marty Happle]

Let me set the stage here...

1.  Bought an investment property cash that was a short sale on April 17

2.  I'm doing a re-fi right now

3.  Title came up that the mortgage was not discharged 

4.  My attorney's paralegal closed the deal and said he filed the paperwork himself

5.  Now that same paralegal is saying that we are waiting for the discharge since the lender sent it to the county 

6.  I asked if this was something that the title insurance policy would take care of and I was told that "this is not a title issue or claim by any stretch"  

  I'm either ready to call the title company myself monday morning or get a new attorney. 

Can we close with title insurance taking responsibility?

[Shawn Thom]

I had almost an identical issue.  Paid cash, then did cash out refi.  On mine, the city hadn't caught up on paper work and the other lien the title company didn't pay the correct amount of a lien.  Title company ended up taking care of it.  It was not fast or easy though.

On mine, they let me proceed once they got confirmation from city that the paper work hadn't caught up and that the title company had sent payment for the last lien.  Mine was city liens for mowing etc.  the total of the amount that wasn't paid correctly was around $1500.  If I remember right, they held back that amount until the got confirmation from city.  I don't know if mortgage would be different.