Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We purchased a GMAC foreclosure, used attorney, here is our sequence of events.
1. Purchased home for cash $286,000
2. Closed through local NC attorney
3. On settle page, title insurance was listed and so was title company. $446.50
4. Move into home, 3 months later find a 2nd mortage was not notified during foreclosure.
5. Contact attorney office and they just keep tell us not to worry.
6. Call up title company and NO COMITMENT was ever issued!!!!!!!!!!!!! even though we paid for it. the attorney NEVER did their research and 2nd was not discovered. And they never got a comitment from the title co.
7. Attorney's office had us sign a "errors and ommisions" document excluding them from liability of errors.
8. Now 2nd mortage holder is foreclosing on OUR HOME!
9. Deed was issued as a Special Warranty deed and on the form FROM SELLER, ATTORNEY FROM BANK it states, No research or deed search was done. This is to let our attorney know, "hey do your homework"
10. Of course the title company won't honor the policy, why would they?
Our realtor never caught any of this either and was not even present at our closing. The 2nd mortage is for $62,000!
We purchased a GMAC foreclosure, used attorney, here is our sequence of events.
1. Purchased home for cash $286,000
2. Closed through local NC attorney
3. On settle page, title insurance was listed and so was title company. $446.50
4. Move into home, 3 months later find a 2nd mortage was not notified during foreclosure.
5. Contact attorney office and they just keep tell us not to worry.
6. Call up title company and NO COMITMENT was ever issued!!!!!!!!!!!!! even though we paid for it. the attorney NEVER did their research and 2nd was not discovered. And they never got a comitment from the title co.
7. Attorney's office had us sign a "errors and ommisions" document excluding them from liability of errors.
8. Now 2nd mortage holder is foreclosing on OUR HOME!
9. Deed was issued as a Special Warranty deed and on the form FROM SELLER, ATTORNEY FROM BANK it states, No research or deed search was done. This is to let our attorney know, "hey do your homework"
10. Of course the title company won't honor the policy, why would they?
Our realtor never caught any of this either and was not even present at our closing. The 2nd mortage is for $62,000!
Can they really attach that to our home?
Unbelievable!
Find another attorney. Fast.
Seems to me that the 2nd mortgagor was notified if the foreclosure was advertised twice in a widely distributed newspaper.
But you have such a trail of misadventures with this one, forget that and contact another RE attorney TOMORROW.
I would have looked for a 2nd mortgage, but am not in a position to tell a client that it was wiped out in foreclosure. That is why you always have YOUR attorney do a title search.
Or, did you use the bank's attorney for all closing functions?
Seems to me that the 2nd mortgagor was notified if the foreclosure was advertised twice in a widely distributed newspaper.
But you have such a trail of misadventures with this one, forget that and contact another RE attorney TOMORROW.
I would have looked for a 2nd mortgage, but am not in a position to tell a client that it was wiped out in foreclosure. That is why you always have YOUR attorney do a title search.
Or, did you use the bank's attorney for all closing functions?
No, we used our own attorney, but his office was swamped due to the rebate deadline. I think he fired his paralegal over it, cause she is not there and a new guy is there now. They avoided our calls for like two weeks and did not return them. The idiots never ordered pre-commitment from the title company! Yet it was on the closing documents. Now the title company is tipped off to the 2nd mortage and there is no way they are going to bind any policy.
Can we go after the attorneys private insurance? The buck is going to have to stop with the attorney. The most amazing thing about this, is we kept hearing how this kind of thing can never happens. Well it did. The 2nd mortage company claims they were NEVER notified. GMAC is washing their hands cause they posted it in bold letters right on the deed, that no certification was issued nor title search done.
You all might be reading about this one in the papers in a few weeks, cause if the closing attorney does not step up to the plate and resolve this, I'm going to scream till my face turns blue.
Call the bar overseers and file a formal complaint, immediately. Like others said, speak with another attorney immediately, as well, and look into a legal malpractice claim (they are hard to win but certainly not impossible.)
These are suggestions but are not to be construed as legal advice.
Ok, I understand legal advice and you all aren't offering it up. and will take any suggestions as casual information. I plan to retain an attorney tomorrow.
But who is this likely going to fall on? The attorney keeps telling me it will be resolved cause it should have been wiped out in the foreclosure. But the 2nd mortgage company claims they were never notified. They want to be paid. Now I know nobody can state for SURE who is going to be on the hook here, BUT, does anyone have an idea how this might play out? Are we going to have to fork out $68,000? I would THINK, the closing attorney, if interested in saving his name and business, would find a way to make this right. This is WHY, in the state of NC, people go to attorneys for their closings. Protection and they dropped the ball in every aspect possible.
I was even admit as hell when we went to the closing that the title insurance was in place! I double checked to see it on the settlement page and it was there. But the rotten bums never had a preliminary done! They used a chart to come up with the premium for title insurance! They did not get it from the attorney's title insurance.
And our agent? Was nowhere to be found! She did not even come to the freakin closing or search anything to do with the title. Hell, since this happened, even I was able to find this 2nd mortgage!
I did some extensive online research and did find a foreclosure notification from the Raleigh news and observer , triangle.com. So there was a legal notice put out there. Shouldn't this mean the second holders are out since they failed to make a claim? This notice appeared to have ran for a few weeks.
I did some extensive online research and did find a foreclosure notification from the Raleigh news and observer , triangle.com. So there was a legal notice put out there. Shouldn't this mean the second holders are out since they failed to make a claim? This notice appeared to have ran for a few weeks.
Actually, this means that you should get qualified legal counsel.
It varies by State, but never let an attorney do work that any title company will do. You stated the title insurance was itemized; 440 usd seem very cheap for 285K. That's a red flag. You either have Title Insurance; or you don't. Good luck collecting from the attorney.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
