We inherited a house from a friend that was free and clear we then refinanced?

Geri
We refinanced the house, all the norm fees paid for title insurance and no liens found.Now that we don't have any money sitting around the county of LA sends us a mortgage lien from 1969. what happens now? I have forwarded all info to the title company but they are taking forever with it, it's been over 2 month's.Who is responsible? I mean we paid 700.00 for the so call title insurance.

Elouise
Not so fast.Did you get an OWNER'S policy when you inherited the property? If you did then YOU are the insured and therefore protected.However if the title insurance you paid for was when you refinanced the property, you most likely only paid for a LENDER'S policy which insures your lender (not you). In that case, the title insurance only comes in to play if the insured (lender) suffers a loss, which usually happens if you default on your loan and they take it back with the old loan in first position.Ask the title company if they issued an OWNER'S policy to you for the property.But back to the 1969 mortgage.It's 40 years old. In most states, it would be "expired" by statute. This would make a technical cloud on the title, but unenforceable as a lien.

Lea
it does not matter as the title company must pay the lien off through their errors and omissions insurance

Lela
You should check with your title insurance company...They are gonna have to pay this.

Alexandra
The title company will bear the burden. That is what your 700 got you.