"Double-dipping" by the Seller (Mortgage Recorded in the "Gap")

Shortly before closing on the sale of a home, the sellers caused a mortgage to be recorded against the title to the home. The title agents search before the closing did not reflect the mortgage because the recordings at the title plant were not current through the recording date of the mortgage. Several months after the closing, the lenders representative contacted the purchasers demanding payment of the mortgage debt. Having purchased an Owners Title Insurance Policy from the Company, the purchasers sent the lenders demand letter to the Company.

After a series of lengthy discussions with the lenders representatives, a release of the mortgage was obtained and recorded. The purchasers title was cleared of the mortgage lien.