When a title search is completed, there is always an effective date on the title commitment. This is the date the county clerk has processed all of the deed filings. Believe it or not, the filing date is very important because whichever lien or security interest is filed first has priority. Being in first lien position allows the lender to foreclose on the property and wipe-out almost all subsequent liens and mortgages.
Have you ever been in line for tickets and get the last one? Do you feel bad for the people behind you? That’s how liens work. When a borrower defaults, the lien holders all line up and once the property is gone, anyone behind that person is out of luck.
Mortgage lenders could greatly benefit from working with Origin Title & Escrow, who will file their deeds promptly to protect their interest in the property.