Title insurance/warrenty deed still issue with tile on refi

[Chris Fayling]

Hey bp!

I’m having an issue and I was hoping someone has experienced something like this and could get me some advice.

Long winded backstory...

I had a property brought to me by wholesalers, I signed a purchase agreement with them. My private money guy looked at it, and didn’t like it. He had his legal team look at it and they said it was a worthless contact and there was more holes in it that Swiss cheese. I later found out their practices were illegal, and just trying to make money a sleazy way.

So I did the real estate investor thing and I hustled! I tracked down the owner and worked out a deal with her and we closed.

The weeks leading up to closing I kept these so called wholesalers on the hook, keeping the deal “alive” at least in their eyes. Just to keep them busy, you know slide of the hand.

The owner and I closed the deal back in April of 2019. I paid for title insurance and received a warranty deed. I renovated it got it rented, seasoned it, and then did the BRRRR thing and started the refi process. Jumped through all the hoops and finally got the clear to close, and then 3 days before closing the title work came back with those "wholesalers" showing interest on the title dated a month before I originally closed.

My questions are; first off how was I able to close the first time? And second title insurance and warranty deed should cover me so I shouldn’t be dealing with this issue. And third how do I resolve this? I highly doubt I could ever get into contact with the wholesalers again, and if I could I’m sure they wouldn’t be to willing to help me out after I kept them from gettin an illegal pay day.

I thank you for any advice in advance!

-Chris