So, it doesn't sound like this is, in fact, a problem for you (yet). The original lender's title order ought to be referenced on the recorded TD's (both the Heloc and the standard TD). I'd start by contacting the original title company who issued the lender's policy and see what their position is. DON'T give them any hint of your immediate concern.
Don't panic just yet. Just order a prelim from them and see what's on it. That company provided a policy based on the original lender's escrow instructions. Unlike Kristine, I haven't seen a deal yet where the Heloc was intentionally recorded in senior position by a conventional lender.
Also, the county recorder may very well have screwed up, not understanding the significance and importance of following instructions exactly as directed. Remember, these same recdorder's office people walk among us and are issued driver's licenses.
The title plant records may tell an entirely diffferent story and this may help you, too. If it WAS intended that the Heloc record in 2nd (jr) position, a subsequent insured transaction may show it title's records as the Heloc being wiped off via the sale as you interpreted the loan positions.
As a final word, there are t-sale buyers with big stones who routinely bid on these deals knowing that they might need to litigate later to clear title.
