Legal Question in Real Estate Law in California

Re: title company/lender error

It depends upon whether the payoff was correct or not. If they did make a mistake, I would argue with the title company that it is their mistake and they should eat it. Make them prove to you that they have a right to collect this money after the fact. Since the lender has reconveyed their deed of trust against your home, the no longer have a security interest in your home. Demand that the title company prove to you where you agreed to pay for their mistake.

That being said, legally speaking, they almost certainly have a right to recover the additional interest from you. If on the other hand, there is no mistake and the payoff made was the full payoff, then obviously you can tell them that you have no further obligation to pay anything.

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