Closing error found 4 months later

[Nick Janovich]

I'll try to make this quick and easy to understand.

I closed on my 2nd rental property in October 2015 (yes!)

The closing firm told me that the seller paid taxes until July 2016 and I owed him about $1,000 for Oct 2015 - July 2016. Sounded logical. This was reflected on the HUD. I did not call the auditor/treasurer to verify this. (Lesson learned.)

Turned out taxes were only paid until December 2014. 

This means $2,400 is due to me from the seller.

I discovered this today when I received a tax bill for 2015. A few phone calls to the auditor and treasurer and it was obvious what happened.

I emailed the closing attorney about how to resolve this. I haven't heard back yet.

What would you do in this situation? I'm assuming this happens more often than it should. I saw another post on here about an error and the seller easily paid up. I hope its that easy but I'm skeptical. If not, is this something title insurance will cover? Will the attorney's insurance cover it? Or am I just going to end up eating it?

[Brie Schmidt]

This happened to me once with a water bill though. The title company tried to get it from the seller, they didn't, and the title company paid it