Absolute Title performed a title search when I purchased my home in March.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 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.
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