Thursday, July 03, 2008

abstractor missed a judgment in the final bringdown

I have a transaction on my desk with a title claim. We issued title insurance in May of 2005. We are now doing the next transaction, our insured is selling. We ordered title through redacted.
redacted is reporting a judgment in the amount of $458.69 against the former seller. This judgment was filed at the courthouse on the day of our closing.
The original title work was dated 4/4/05. AP ordered a bringdown on 5/3/05 which came back clear. We closed on 5/6/05, the day the judgment was filed. We disbursed and the seller got over $4000 in proceeds. We sent the deed to redacted for a final bringdown and record which they did on 5/10/05. redacted did not notice the judgment and simply recorded. I have to wonder if they decided not to run a bringdown again since they had just run one a few days earlier.
I spoke with redacted at redacted and she has agreed to pay for the judgment.

This is a perfect example of a title claim resolution which will NOT show up in the official numbers. Interesting, huh?

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