"Lisa Williams, closing coordinator for ServiceLink in Moon Township, Pennsylvania, was processing a cash-out loan. The property being used as collateral for the loan is in North Carolina and held in a life estate for two minor children. A deed taking the property out of the life estate had been recorded.
Lisa noted per ServiceLink's underwriting counsel, the deed recorded in July 2022 (taking the property out of the life estate) was not valid without a special proceeding under North Carolina law NCGS 35A.
The underwriting counsel stated the borrower would need to hire a North Carolina attorney to petition the court. Lisa informed the borrower of the underwriting requirement via email. Miraculously, the next day, the borrower responded with a document entitled, "Special Proceeding with Superior Court." His email read, 'Good morning, please see attached document. Wow. We were able to get a signature quickly. They must be tired of us harassing them. :-)"
Lisa noticed the Special Proceeding with Superior Court document was missing the court case information and the formal submission pages that should have been included. She sent the document to the ServiceLink title curative team for review. They denied it for insuring purposes for the same reasons..."
