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Lender sues attorney, title company after discovery of prior lien
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Court Report
Tuesday, August 18, 2015
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Prior to closing a loan on property in Tennessee, the lender received a title commitment requiring a prior lien to be released or subordinated. The attorney conducting the closing assured the lender the matter was taken care of, and the bank proceeded with closing. When the borrower defaulted, the bank discovered the prior lien was not released or subordinated and sued the closing attorney and the title company that issued its title policy. Read on for more details.
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