Is Title COmpany Responsible

[PerplexedToo]

What is the name of your state? Illinois
A friend of mine sold her home and bought another. 2 days before closing she was taken to the hospital slipped into a coma and 5 days later awoke in ICU to triple bypass surgery and was hospitalized for several days . SHe returned to her new home to recover the surgery for about 3 months. Her son had power of attorney and while his mother was in coma he closed of the homes. 8-10 months later she started getting letters about a $12,000. lien against the first home that was not paid at closing. Now, 2 1/2 yrs later the lien holder is taking her to court for judgement.

Is the Title company responsible for this, as she paid for title search?

SHe is 75 yrs pld and does not have the money plus the interest they are demanding, as she is on a fixed income and has medical problems. Thank you!

 

[JETX]

Is the Title company responsible for this, as she paid for title search?

Based solely on the information in your post, it would appear that the title company is PROBABLY liable for paying this from the insurance policy. A final decision on whether they are truly liable would require a full review of ALL of the facts.

 

[nextwife]

Depends upon WHEN the lien was filed and if it should have shown in the title search.

Typically a seller is not protected from claims resulting from their own actions. So if this was a lien in the making, so to speak, because mom had not paid something, and had been filed after the effective date, then mom is surely liable for it.

So, the question is:

Was the title company also the closing/disbursing agent? Did the closer fail to collect or send payoff funds for a shown lien on the title or did the title search miss the lien? If the lien WAS shown on the report but the closing agent failed to collect/send the payoff, then the closing agent may be liable.

If this is a valid lien that did not show in the search for some reason, likely the BUYER is protected, but the title company may have recourse (via a typical seller's affidavit) to turn around and go after the seller to collect.

 

[PerplexedToo]

thanks for the info . Apparently the lien on the property was placed about 7 years ago and I am not sure what it was for.

 

[HomeGuru]

thanks for the info . Apparently the lien on the property was placed about 7 years ago and I am not sure what it was for.

**A: then your friend needs to find out and get to the bottom of things.