Question by dogcrazy: How do I clear up a title problem on my house?
My original lender sold my mortgage and it has subsequently been sold twice more since the original time. None of the 3 lenders did an assignment of mortgage. I am now trying to refinance my house but there is no “chain of title” in the county records going between the lender that I currently make payments to and my original one. They are telling me that I can’t close until each of the lenders “assigns” the mortgage to the next. The problem that I have is two of these lenders are now defunct. How can I fix this problem?
Best answer:
Answer by neonlights1971
I’d ask a Lawyer that deals in this type of problem. sorry not much I can say. but best of luck to you!
Know better? Leave your own answer in the comments!
the chain of title is from the date of purchase till now and is in the title report. It can be reviewed as isioaatima with the respa to sell loans and the title company and even your insurance company may have the documents needed to show the movement of this note
Find a local title company and have them fix it for you. They can clear up a cloud on title, but it will take some time. if you have title insurance that YOU paid for at the first closing then that will insure the title and they must fix it. The bank always gets their own title insurance, but that is for them only and will not help you. The fee to clear up the title cloud will probably be about the same as title insurance would have been so you probably did not lose too much. Private title insurance is a good idea however.
go with star gazer. I would go the title co. that you paid to insure your title. they will be on documents somewhere start there.
I know in some states there is no legal requirement to record a mortgage assignment. I have run into the same issue when trying to release old mortgages on a property I was trying to purchase for investment purposes. The old banks had changed names, gone out of business, etc., and it was almost impossible to determine who to go to get a release of mortgage.
I have even purchased a private mortgage (that originated with a bank and then was sold privately several times) where I didn’t have to record the assignment to me, but I recorded it to protect my interest as the new lender. If I hadn’t, there would just have been a copy of an assignment of mortgage in my file and the file of the private investor I purchased the note from.
I researched the laws and found that the borrower was supposed to receive a letter/notice indicating who now held the mortgage and who was servicing it (if different from lender), and to whom the payments should be sent and on what timing. So, I sent a letter.
So, the lenders should have sent you documentation each time they sold the mortgage and you (hopefully) should be able to provide that information to the lender and title company. Ask the title company what they recommend be done for your area (some type of affidavit?), as they see these types of issues often.
A local real estate attorney may be able to assist as well. National banks have to conform to RESPA laws and if they did not, a good attorney could argue that you owe less than you do, or sue the bank(s) for other damages. Plus, if the bank(s) can’t prove you owe what you owe, or that you owe it to them, then the bank(s) can’t force you to pay.