Updated over 5 years ago on . Most recent reply
House Sold Without Paying Off My Lien
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?
Most Popular Reply
@Greg H. the OP can issue a Notice of Default right now. The time to cure is 20 days. No need to wait until December at all.
Don't wait @Jackie Lange, just start moving on the FC. Forget making contact with title companies, agents and other 3rd parties. None of them will help you. (except your own counsel) The idea is simple, you were alienated - title to the real property was conveyed in whole and you were not paid off. Your instrument should carry a due on sale clause that gives you a right to call the whole loan due. The NOD is the first step. You will send the NOD to the subject property which should get the attention of the new homeowners. They will panic and start making calls to the title company, agents and alike. All you want is to be paid off in full. Avoid conversations with 3rd parties. For a brief moment you will be treated as the devil squashing the dream of these homeowners. It just is, what it is.
As the chips fall, you will get paid off. The owner and lender policy will kick in and pay you off. The insurance company will then pursue the borrower/seller civilly and investigate the title companies search to see why the lien was missed. None of that matters to you. Don't get wrapped up in the drama outside your door. There will be much.
It's not your fault. It's not the new owner's fault. And that is why we have title insurance.