Managing a Tax Lien through Title Insurance

[Kristina Anderson]

Hi All! Happy New Year -

We just discovered a property we purchased last spring (2022) had a tax lien on it that had been sold in late 2021. Notices had been going to the seller. The lien was put into foreclosure about a month ago. Again, with notices to the seller using the older address on file. Big error on the title agent's part, we know. The reason I'm here is that they advised us to file a claim against our title insurance, which we did yesterday. The auditor in Cincinnati sent us a tax lien certificate with an amount good through 1/15/23. I just talked to title insurance at Westcor and they expect an adjustor to be assigned Monday or Tuesday. My question: is the normal order of things that we file the claim and wait until they pay off the taxes OR that we pay off the taxes/cure the debt and then file the claim showing the payment?  I asked title insurance and the front desk suggested I wait until an adjustor is assigned.  What do you all think?

Thank you in advance!