Cloud On Title - YouTube

(00:03): Let's move on to  

losing it in Southfield. Oh, this one's a long  one. Buckle up, everybody losing it, losing it  

in Southfield says I went to go close on the  refinance of my home when I was told by my title  

company that there is a cloud on the title. It  seems that there's an old mortgage that was never  

discharged by the bank of the previous homeowner.  I did not buy the home from an individual, but I  

bought this home from a bank. The problem  is that the bank is no longer in business.  

We bought this home from the banks, R E O. So the  bank actually had foreclosed on the former owner.  

What can I do? Do I need to go to court? And how  do I clear this up from losing it in Southfield  

as worst case scenario in a paragraph, (00:58):  

It's got a lot of stuff going on. Doesn't it? You  know, I come from banking and mortgage lending and  

finance and so I've learned over the years how  to like maneuver these things. I think the best  

way to do that. (01:16):  

Wow. Okay. (01:17):  

I don't know. No, I'm kidding. You need (01:21):  

To call an attorney. (01:25):  

Well, first of all, I, you know, it really,  first of all, title insurance is a risk  

management business, right? It's insurance  and they manage risk. So what I would do  

and I'd probably get on the phone with the title  company or an attorney for the title company. And  

I would actually want, I want to see the abstract.  The abstract is the actual documents that support  

the report that comes from the title company.  Okay. And to me, if I can see the mortgage  

was for close, properly with a Sheriff's deed,  I don't know why there be a requirement to have  

now a discharged for the mortgage company. And I'm  going to tell you why. So this is like somebody at  

the title company either got this wrong. This is  not that difficult. Okay. Somebody got this wrong  

at the title company and or these people got the  credit. They what they're supposed to do wrong.  

(02:15): But  

(02:16): If they're, if they're telling me that  

they got this question and the title companies  say that there's this issue, cloud and title,  

normal people like lay people don't deal with  this. So somebody at the title company, I think  

messed up, here's the thing, the Sheriff's deed.  If it matches the mortgage information and it's  

the Sheriff's deed that matches the mortgage that  was for closed on. I know there's a distinction.  

You don't need a discharge for the mortgage  company or the bank. It doesn't matter that  

the banks out of business, if they foreclosed  on it, nobody redeemed their property.  

The bank now owns it. That's why I went  through the REO. If a mortgage is for closed,  

you don't discharge a mortgage. That's no longer  in existence. That March was extinguished by the  

Sheriff's sale. Do you understand? You don't want  to discharge a mortgage when the mortgage is still  

in effect, okay. (03:10):  

These people need to go back in and I don't know  if they're going to watch me. I don't know if I'm  

losing it. Don't lose it. Pick up the phone  and call us. Cause that one is ridiculous.  

From what I can tell you from when I hear, unless  they foreclosed on a different mortgage. See,  

now there could be, I am speaking too soon. There  could be several mortgages that were on that  

property. And we don't know. Well, no, because  even if that's a priority lien, we call that  

the priority lien holder, they foreclosed on the  property. They're the ones who are able to give  

these people, the deed, any other mortgages that  were on the property don't need to be discharged.  

You know why Blair? Right. (03:50):  

Because they get closure. (03:53):  

Okay. Yeah. I'm, I'm pretty confident that this is  a mistake from the title company. Unless there's,  

unless they're telling me that, you  know, now one thing that can happen is  

Oh, wow. Texting can show up that was not wiped  out by for closure because the IRS was not  

notified properly. And that could be the issue we  don't know, but there's enough here that makes me  

think that these people don't have to lose it.  They can go back to the title company or pick  

up the phone, call a real estate attorney and  contact a real estate professional, an attorney  

who will look at the paperwork to double check.  And I really think that's the problem. I don't  

think this was an issue. (04:41):  

Wow. So it, so in this case, would,  would it make more sense to call you  

and then have you call an advocate with the title  company rather than losing it be like, yeah,  

sure. (04:57):  

What do you call professional? You know, it's  like an hour worth of maybe not even an hour  

worth of work and you, you review it. I do this  a lot for clients and we review this stuff and,  

you know, we don't usually we don't usually  pick up the phone. We will write a quick letter.  

And if I know the title company, if I know one of  the owners or the agents will give a call and say,  

Hey, are you sure? You know, did you take a  look at this? And that happens quite often.  

Something's just not doesn't sound right. But  it's, it sounds that these people were given  

the wrong information. (05:34):  

Yeah, it certainly does. Okay. Well, all right,  losing it. You can stop pulling your hair out.  

Give David's office a call. Yeah. Yeah,  that does sound funny. All right.