Would you not have approved the application subject to clear title? And if later you find that your borrower can't get such, would you not have an approved, not accepted? Didn't the loan get approved, subject to certain conditions-clear title. (I just hate to see a borrower "denied" a loan (as do most of them hate to see it), when the circumstances for the denial, are likely not in their control-isn't there something else?)
Just a thought but isn't the appraisal value subject to marketable title? And if there isn't such, isn't the value of the property diminished?
Only way to learn is to ask the stupid questions . . .that's where I come in.