Good day Wendy,
Could you be asking about a mortgage servicing company?
In the State of Nevada the "Title" of the property is in the name of the owner of the property. Not the Mortgage Company or title Company.
The Title company hired by a Buyer looks at past recordings of ownership and liens for a clean record of Owners and lien releases. If there is a reason that the current Seller's Title in not "Clean", the "Title Company" will take steps to "Clear" the title and them record the new Owner's name as the current Owner with clear, marketable "Title" to the property.
Sometimes the "Title Company cannot "Clear" the "Title". This can be caused by a lien that is not released, a past signing issue, recording issues of past owners, and my favorite, vesting issues.
If the Title company cannot 'Clear" the issues, the Title Company will not issue Title Insurance to the new Owner (Buyer). Without title Insurance, the Buyer and the mortgage company are on their own to settle any challenges to the rightful ownership now and in the future.
Lenders will not loan funds on a property that do not have "Clean Title". That becomes an issue when selling. Once a "Title" has a cloud (also known as an imperfection) in the title, the property is not marketable as all future Buyers will also have a suspect claim to ownership.
What do we do with a clouded title? We trace back to the last clear title recorded and then attempt to solve the imperfection of the chain of ownership. Sometimes it can be cleared. Sometimes not. If not, go get another property. You will not be allowed to get title Insurance in the future until the Title is clear.
I am available to chat personally with you concerning any of the issues mentioned. Always remember to seek an attorney for legal issues.
Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.
Steven Goldman, CRS
Certified Short Sale Professional (CSP)
GRI, ABR, SRES, CNHS, PM, CCI
Realty One Group
Web Site: http://www.teamgoldman.info