HUD second lien letter after cash purchase with title insurance

[Brian Guilmette]

I purchased a property in 2015 and recently got a letter from HUD stating a secondary lien was not paid off at the closing. I contacted my title insurance company and they say they will not pay because i haven't sustained a loss (yet). My question is how do I force them to pay the defect in title? It is less than 7k and my state allows small claims court for the amount. Can I sue the title insurance company? My attorney who closed and also sold me the title insurance has not been helpful. I would like to fix the defect in title before I decide to retitle it and lose the insurance. Thanks!