First Flip - Title Issue - What to Do?

[Sean Griffin]

I am close to closing on my first flip. Closing has been held up for almost a month due to a title issue. A prior mortgage discharge was signed by a company acting under POA, but the POA was never recorded. The seller (a bank) has agreed to sign an indemnification stating that they will take responsibility for resolving the title issue. This will allow me to get title insurance and move forward with the closing.

However, my attorney has advised me that if I am going to resell within a couple months this title issue could still be pending resolution at the time of sale.  The indemnification agreement will still be in place, so the buyer will still be able to get title insurance and move forward with the transaction and resolving the issue will remain the bank's responsibility.

Any thoughts on how I should proceed?  Has anyone ever experienced this before?