Of course I have an approved short sale in closing and the title company comes back with a nice request :
Find the missing assignment from the PREVIOUS owner of property, not my client, a New Century mortgage from 2006 discharged by Wells Fargo/ASC in 2007
Anyone have a Legal Research contact for Wells Fargo? I'm assuming they're the party to contact to get a missing assignment versus the defunct New Century??
Thanks for any brain storming gang!
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Thanks guys for the comments. The previous title company should be the one responsible but for the sake of expediting I called Wells Fargo/ASC...used the number on their website, what I thought was a customer service number and the first person who picked up was actually able to pull up the old file, confirm there was a missing assignment, order a corrective assignment through curative, and gave me her personal extension, said she may think it could take a couple weeks being end of the month but perhaps sooner.
Although I have to cross my fingers and wait it out, it seems to have been the proper point of contact. This must be more common place now, since suddenly title attorneys want crystal clear titles even though they ignored the law for the past 10 years, since we're back to the good old low rate refi days, their ethics have returned and they want US to do their work for them, knowing we will.
Excellent, be sure and document all the conversation and email the party thanking them for prompt action (describing the agreed action and expected time in some manner).
Your title agent did the proper thing and WAS correct in assuring that assignements were properly performed in the old note. Even in foreclosure actions today this is not generally required in the court and it is known that there can be later claims, teh courts still allow foreclosure!! just wrong.
BTW, it is still reasonable to begin the claim on title insurance (now that you have verification of clouded title), and keep the file OPEN until this issue is resolved. Notify them of the current actions. The bank has agreed that the title is encumbered in some manner by thier response. You can give the title claim department the name of the party who has agreed to assure proper disposition. This may escalate and cause faster completion of the process.
Make sure that the SS approval is extended and time begins at the competion of the removal of any cloud on title. I would hate ot go through the repair of title process and have the file close and reopen.
Log all time in hours and actions regarding this. You are doing work for the note Holder at this point and not related to the SS or sale of property, you are clearing a title (not part of any agreed function)!!!. A reasonable wage IS acceptable and EXPECTED to be paid, especially if aything happens and the file turns south. In equator I believe that there is a way to upload actual expenses....include your usual and customary hourly fees in billings regarding this process. They can be waived if the file closes, but you need to have claim if the Holder causes failure to close for any reason. In some states those fees can create lien as well.
I have to agree partly with Ron, and partly with Joe.
Wells filed a satisfaction of mortgage originated by New Century. Title co. "A"(sellers title co. at time of his purchase) sees no issue/risk with not seeing an assignment. Title co."B" does seem a little overly cautious in wanting to see an assinment for this satisfied mortgage. Had there been a defect/fraud which caused a claim against the property, then Title co. "A" would have to defend, rightly or wrongly. But right now there is no claim, only a differing "opinion of title" from Title co. "B". I agree a different underwriter, even though there only a few, will probably have no issue. Either the title co. should track down the assignment if they require it, or switch title co.s.
If it is possible to switch to title co "A", they couldn't object. Then again, threatening title co "B" to switch to title co "A" might make them come around - kinda doubt it, though. They probably have a nervous nelly in underwriting - probably should never be used for a short sale (or probably an REO) to avoid these kinds of issues.
Title Curative Departments are set up to handle these. The Title Company should have one.
I agree with Brett - The prior title company was responsible to ensure the assignment was completed appropriately (at that time). If not, there may be a claim against that title company.
I agree
Marty,
Have you contacted the previous escrow/title company that handled the original sale? I would start there and see if they can provide any documentation showing that the lien was settled and paid. If that doesn't work we can try to brainstorm some more together and you can feel free to contact me anytime.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com