I have a similar transaction. I am a board member in a homeowner's association. In filing updated C,C &R's, we determined that documents (both deeds and mortgages) on one neighbor's property had not been recorded.  His property is Torrens, or Registered land.  Deeds for the last two owners were filed in the abstract records, which means they have no standing, and the previous owner, now in her nineties, is still in title. 

 I explained the situation to the owner, who asked me to talk to his Realtor.  I spoke with the Realtor (who is part owner of athe  title company that closed the transaction.) He referred me to the Closer.  I spoke to the closer. She assured me, about four months ago, that she would take card of the error.  I spoke to her a couple of weeks ago, and she simply "hasn't had a minute" to deal with the problem.   Obviously, no one seems to think it is a big deal that the owner is not in title and that the mortgages are not filed on the property.  Is this what the industry has come to?