I have a home that is in short sale in SC. We found out at close that the title isn't clear. I bought it several years ago & PO had a mortgage + equity line of credit. Both were paid off, but equity was not closed (atty error), and the former homeowner continued to use it. In the short sale, the bank accepted an offer but we were unable to complete the short sale. The agent/paralegal are seeking "resolution" from the former closing attorney via his E&O insurance. I don't understand specifically what this means. Agent represents me and the buyer.
Who technically has the title to the home now?
What are my responsibilities now if title did not pass clear to me?
If the home did not transfer, wouldn't the mortgage company prefer filing with their title ins for the full balance of loan?