I'm in an identical situation with a rental property - was Countrywide, now BOA. I would think that the title insurance I paid for on closing would protect me more than it would the bank, but who knows.
I go to a mediation hearing with a client (land developer) on Thursday. The title company missed something big, they know its their fault, and they’ve stretched it out for 18 months. I know whose corner the average title company is in...their own. Title insurance is a joke. Its required in our state, but its nothing but a giant disclaimer.