Title Claim Validation FAQs
The questions and answers below will help explain why Bowes & Hennessee, P.L.L.C. is asking you to again sign loan documents that you had signed at the time you obtained your mortgage loan.
- Why did I receive a letter from Bowes & Hennessee, P.L.L.C.?
- What is a mortgage or deed of trust?
- Why was my mortgage not recorded with the county?
- Why does a mortgage need to be recorded?
- I have copies of my mortgage documents. Will these work?
- What is title insurance?
- Who is Fidelity National Title? Another company issued the policy on my loan.
- The lender in your letter is not my current lender. Did you make a mistake?
- I called my lender and they say my loan is fine.
- This sounds like a scam!
- What will happen if I do not comply?
- What is involved in fixing the problem?
- Will there be any cost to me?
If you have any questions or to respond to the letter we sent you, please call Bowes & Hennessee, P.L.L.C. at 214-390-4357 or click here to contact us online
Why did I receive a letter from Bowes & Hennessee, P.L.L.C.?
You received the letter because your lender filed a claim against their title insurance policy as their security interest (mortgage or deed of trust) has not been recorded with the county. One of the documents you signed in your recent real estate transaction was meant to give your lender an interest in your property in exchange for the loan they made you. This document (mortgage or deed of trust) must be recorded with the county but never was recorded.
What is a mortgage or deed of trust?
With a mortgage, you continue to hold full legal title to the property you have bought, but you give the lender a lien on the property. If you do not make your mortgage payments, the lender can foreclose on the property. In some states, a deed of trust is used instead of a mortgage. With a deed of trust, you give the lender a deed to the property, but the lender can only use or sell the property if you do not meet the loan terms. As a practical matter, there is very little difference between these two methods of giving the lender a security interest in the property.
Why was my mortgage not recorded with the county?
The reasons why your mortgage was not recorded are unknown, but possibly the agent who handled your transaction has since gone out of business or the original mortgage was lost or destroyed.
Why does a mortgage need to be recorded?
Recording a mortgage provides a lender with their interest in your property. If the mortgage is not recorded the lender does not have a priority interest in your property.
I have copies of my mortgage documents. Will these work?
Every property recorded in the country requires an original document to record. They will not accept copies. Your lender has provided us with copies, which we will prepare for you to re-sign them.
What is title insurance?
Title insurance in the United States is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance is principally a product developed and sold in the United States as a result of the comparative deficiency of the U.S. land records laws. It is meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens, or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy. The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853. The vast majority of title insurance policies are written on land within the United States.
Who is Fidelity National Title? Another company issued the policy on my loan.
Fidelity is the parent company of several title insurance companies, including Chicago Title, Alamo Title, Commonwealth Title, Lawyer’s Title, Security Union, and Ticor. Please view their website if you have any questions by clicking this link: www.fntg.com
The lender in your letter is not my current lender. Did you make a mistake?
No, it is not a mistake. Lenders frequently sell their loans. The lender on the letter may be the lender who originally held the loan.
I called my lender and they say my loan is fine.
While your loan is probably current as far as payments go, it is not recorded with the county. Several of the lenders do not put information about claims in their consumer databases, so the customer service agent answering your call would not know of the problem. Please contact us and we can give you the name of the person who filed the claim. Then you can call your lender’s toll-free number and ask to speak with that individual.
This sounds like a scam!
This is not a scam. It is a requirement of the agreement you entered into when you borrowed the money. The only thing Bowes & Hennessee, P.L.L.C. will ask you to do is sign documents you have already signed. We can provide the copies of those documents that you already signed if you do not have them in your records.
What will happen if I do not comply?
While you have done nothing wrong, you are obligated to re-sign these documents. You signed documents stating that at closing. If you do not re-sign them, Fidelity will have no choice but to file a lawsuit to put these documents on record. You will be named as a defendant in this lawsuit and this could result in additional fees and costs that may include attorney’s fees.
What is involved in fixing the problem?
The documents referred to in your letter need to be signed and notarized. We can provide the documents for you to sign and you can sign them before a notary public of your choice. Alternatively we can have a notary meet you at a place of your choosing. Either way we will provide a pre-paid shipping label so you can return them to us. We will then send them to the county for proper recording.
Will there be any cost to me?
No. We only ask a few minutes of your time. You will incur no expenses.
