Absolute Title, Inc - Breach of Contract, Ann Arbor, Michigan
Absolute Title performed a title search when I purchased my home in March 2004. In the contract documents there are two mortgages listed in the names of the prior homeowners, one through Countrywide Mortgage and one through HUD. In the documents, it is stated that both mortgages would be paid off and the payoff documents include both mortgage amounts.
In February 2009, I received notification from HUD that there is still an outstanding mortgage on my property from the prior owners and now I am responsible for this mortgage as owner of the property. I contacted Absolute Title and was told to file a claim on my title policy with First American Title Insurance Co. They denied the claim stating since I now have a trust on my home I can't file the claim; however, it's a warranty deed so I'm told this should not apply. I have had to take legal action on this and am now looking at paying legal fees to get this resolved with First American Title (based on lawyer advice). However, I don't understand how the legal documents from Absolute Title are not being honored.
The mortgage amount is $8546.10 and according to the documentation I was given, a check was supposed to be issued to HUD to pay this off. Either Absolute Title never paid it due to an administrative error or they paid it and need to produce documentation to prove this to HUD. I do not understand why I need to pay legal fees to get this resolved. Absolute Title is in breach of contract.
2 Updates & Rebuttals
Ian
Michigan,United States of America
I had a good experience with these guys
#3Consumer Comment
Tue, March 15, 2011
I almost didn't do business with Absolute on the basis of this report, but for various reasons I ended up working with them anyway and had a really good experience. They put a lot of effort into dealing with some unusual circumstances of our transaction and took the time to answer the concerns of a real estate novice. I will certainly be working with them again the next time I need a title company.
From the facts you stated you are certainly owed an insurance payment, but as I understand it the title company is just acting as an agent for insurance underwriter, so Countrywide would be the party at fault here. I'm glad that they weren't the underwriter for my insurance.
I hope your situation was resolved satisfactorily, and recovered your lawyer fees from the insurer as well. It's too bad you can't recover the time and stress too.
Dave
Glendale,Arizona,
USA
Wow. I don't see why you would need an attorney
#3Consumer Comment
Fri, December 04, 2009
An attorney would be stupid. Attorneys are the biggest crooks around. And unless, it could be arranged where the responsible party would have to pay attorney fees that you incur I wouldn't even consider hiring an attorney.
I know that Title companies, deeds and all of that stuff can be very confusing as I was sort of in the business at a time in my life. I have NEVER heard of a homeowner having to pay for someone else's outstanding lien. NEVER. And I worked with quite a few loans and heard about 100 times more than what I was even involved with directly myself.
This whole story doesn't add up to me but not of any fault of yours. First of all, Absolute Title certainly has to have some responsibility in all of this. They received a check, or at least according to First American Title they did, so what happened to the check? YOU didn't cash it. And even if you could have cashed it, it was the title companies responsibility to make sure it was paid before granting you the title. That's what title insurance if for.
I think you need to go after Absolute Title. IF there is a screw up then the title insurance covers the screw up-plain and simple. As a rule, title companies don't screw up on a major proportion because it can be so costly but clearly they did.
I do know a guy that works for a Southeastern Michigan area title company. He knows his stuff and I'm sure he could advise you. Buy the guy a few rounds of drinks and he'd probably be more than happy. I wouldn't lose any sleep over this. Title companies are paid for this kind of stuff. It's their responsibility.