Title company error almost 1.5 years ago, incorrect property

My current home has a mortgage on it since 2009, and in 2011 I purchased an investment property in the same city and paid cash. Later in 2011 I re-financed my current home into a more favorable rate.

Everything seemed to be fine until recently when I applied to do a cash out refinance on my investment property. The day before closing (yesterday) I was informed by my loan officer that there is a mortgage lien against my investment property. The amount is for the loan of my late 2011 refinance. This means they put the lien on the incorrect property. I checked with my bank and all my tax documents / escrow / property tax id lines up with my home (not the investment). This has halted my cash out refinance.

My loan officer is contacting the original title company that did my refinance to see what happened… if they can figure it out.

Has anyone ran into this issue? Keep in mind this happened a year and a half ago.

What do you recommend doing (if anything, besides clearing it up).

The properties are located in Michigan.

Unfortunately, there is not much that you can do besides what you are already doing to un-cloud the title.

This should be a simple matter. Once the bank can verify that indeed they recorded the lien on the wrong property, all they have to do is record a Release of Lien or Certificate of Satisfaction (depending on the State) on the investment property. This will clear your title. Then they record a new lien for the correct property. This lien should be past dated if possible. If not, then I guess they will record the new lien based on your current loan value.