Buying or Selling a Home/Home title not cleared

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Expert: Jim Root - 4/28/2009


Question
Hello,

I re-finance my home mortgage with Etrade Mortgage back in 2003. At that time, Etrade Mortgage Escrow Division served as Title company.

I'm now refinance with Bank of America, they told me that one old lender still on my title. This lender already paid off when I did refinance with Etrade back in 2003. B of A will not close my loan until I remove that old lender from my tiltle.

Both Etrade Mootgage and Etrade Escrow Division are now no longer in business.

How can I clean up this mess? Is there a way to fix this problem or I have stuck with it forever, and never be able refinance my mortgage again?

Thanks alot for your help,
Hai Doan

Answer
Hai Doan--

You say that the Mortgage Company's "Escrow Division served as Title Company." They may have run your loan through escrow and closed the loan in their own Escrow Division, BUT I'd bet they DIDN'T issue a Title Insurance Policy. I'm sure they contracted the "Title work" out, just as they did the "Appraisal work," the "Credit History work"--all they did was PROCESS the loan through escrow & CLOSE it!

Go to your files & pull the "Package" of Documents you signed & were given copies of at closing of the loan. In the "package' you should find a TITLE INSURANCE POLICY. Contact the COMPANY that issued the Title Insurance; it's their responsibility to help you get this cleared up--that's one of the things Title insurance is for!

Also contact the "one old lender" that Bank of America says is still on your Title. Ask them for some written proof that they were paid off!

Further, contact your local Credit Bureau and request that they put a tracer on this "debt" Show them the SETTLEMENT STATEMENT (HUD-1) from your last loan. It should show the pay-off of the loan that's still on title.

Between the Title Insurance Company, your Old Lender," and the Credit Bureau, you should be able to get this cleared up. I wonder about the competence of your Loan Officer(LO) at B of A--he/she should've been able to provide you this info AND work with you to get your title cleared.

(Sorry LO, but in "my day" I'd have taken care of this myself; wouldn't have let the Borrower worry abut it!)

If my suggestions don't work, however, you may need to hire an Attorney who specializes in Real Estate/Financing Law to handle this!

(And in that case LO, I apologize!)

Hope this helps you. GOOD LUCK!

--JIM

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Jim Root

Expertise

How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!

Experience

Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!

Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).

Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.

Education/Credentials
Associate Degree in Real Estate Studies plus: Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years. Bachelors Degree in Mass Communications, Masters Degree in Education/Teaching

Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.

Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!

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