Home loan was never recorded?!?!
I have a Chase primary and secondary loan. The primary is going to be paid in FULL but we have to short the secondary. The problem is the primary was never recorded. We've been trying to find out WHO can help us for the last 30 days at Chase - it's gone to the office of the President and still NOTHING.. no one can seem to help. I escalated to Fannie Mae who directed me back to Chase - Anyone have a clue where I can call to get this lien perfected?
Replies to This Discussion
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Permalink Reply by Wayne Brooks on
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Smitty, does it matter? Unless the 2nd wants proof via recorded mortgage that the 1st exist. The approval letter from the first would extinguish the mortgage,, whether or not the mortgage is recorded. Is the second mtg taking the position that they have a first, since their's was recorded first?
I know I must be missing something here, no afternoon coffee yet.
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Permalink Reply by Smitty on
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I don't need an approval from the first. The first is being paid in full, but we don't even have a book or page number for the title - it's not clear title. It's as if the first doesn't exist.
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Okay, I can sort of see a title insurance underwriter wanting evidence the first mortgage was paid, in the event it could be recorded later. But like you say, as far as title goes, the first Doesn't Exist, not against third parties any way. Man, I hope the investor for the second doesn't decide to declare "hey we're the first, pay us in full!", since they really are the first now(assuming there was no specific subordination language in the second). Good luck. Let us know if they record it, just so they satisfy it afterwards.
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Permalink Reply by Melissa Zavala on
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This is a really interesting thread. My question is this: Why would the title company care at all of the first lien is not on title. In the state of California (and I realize that you may not be in California), the job of the title company is to deliver clear title. It is not a problem of the title company if the first lien was never recorded. If they have proof that it wasn't, then there can be no claim against them. Maybe I am missing something...
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Was there a foreclosure filed on this home if so who filed it and does the county have a record of the filing ?
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Permalink Reply by Jayne Sanders on
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Send a request to Chase lien release (fax 3024199357) along with the title search which should show the presence or lack of a recoreded motgage. Also send a signed letter from the borrower requesting a release of lien. I am doing this with a HELOC that was issued by WAMU and they apparantly never sold it to Chase, so it is getting released and we can close
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This sounds like the best way to go on this one. File for a release of lien. Send all of the docs that you need to prove it and then work on the 2nd. If there is no lien recorded on title and they release it then the 2nd position lien becomes the 1st position lien. Sounds like that would make it easier to negotiate.
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Permalink Reply by Ghana Bigsby on
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Hi There
I would encourage you to contact the title (not escrow) company that INSURED the indicated prior transaction.
Title insurance is paid to protect the borrower and the borrower's lender(s).
What state is this property in? What are the state's laws regarding priority of liens.
In California first recorded = first lien.
I believe you can not change this; UNLESS the lender currently in first place records a subordination to the want-to-be first.
Mistakes happen. Like this one. That's what title insurance is for.
I had an incident several years ago with a missing recorded release of trust deed (re-conveyance of a trust deed) in Ca. Lucky me it took me all of 3 hours to slay that dragon trying to get paid twice.
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Title insurance only covers events/issues that occur prior to closing. Title insurance only looks back in time. Any issues "created" after closing aren't covered.
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Did I miss-read the current discovery of a missing document recording?
It sounded as if the incident of the missing recorded lien happened in the past prior to the closing of the last transaction the now seller had with the "assumed 1st lender".
The recent discovery of the mistake does not change the historical timeline nor the potential for policy coverage.
I would simply allow the title company to inform you and your seller whether this is a issue that is covered or not.
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There doesn't seem to have been any assumption of a pre-existing mortgage, from the above information. The current owner owner bought the property, but his 1st mortgage was never recorded.
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