House Sold Without Paying Off My Lien

[Jackie Lange]

About 10 years ago, I sold a house with seller financing. I closed at a title company.  They recorded my deed of trust (mortgage). 

The buyer stopped paying me.  I discovered that she sold the house a few months ago but the title company in Dallas Texas completely overlooked my lien. They never called for a payoff.  The funds were given to the seller (my buyer).  

The title company says call the seller but she's not returning my calls or emails.   

The title company's error and omission insurance should kick in, but it will require a lawsuit to get them to pay.

Or, I could foreclosure on the house since no payments have been made for several months.  

Looks like I will have to file a lawsuit against the title company, lawsuit against the person I sold the house to, and file for foreclosure if I ever want to see my money.

Has anyone else ever had this happen?  

[Jackie Lange]

Filing foreclosure is about $1500 and takes a few months.

A lawsuit starts at $5,000 and goes up by the hour.    But the time if finally got settled, the attorney would likely get more money than I would.

If I file foreclosure on the old owner, she will probably ignore it... she has nothing to lose.

But filing foreclosure on the new owners will get them to take action contacting the title company and their Title Insurance company.  If they fail to take action, I get the house back.  Either way I win going this route.