I don't know if it is my luck, but lately I have several settlement delayed due to title issues. I know with REO properties usually we have these delays, because the ratification of foreclosures and deed recordations. But lately I have found some crazy things.
I have two properties that have been under contract since April and May, both have title issues.
Property one is bank owned. It has been undercontract since April, they are waiting for previous foreclosure recordation, that is the foreclosure in 2004 before the investor who just got foreclose purchase the property. Now we are waiting for the seller's and buyer's title copanies to get it right this time, but it has taken too long.
Second property, is a short sale, the title problem is that the transaction in 2000 the title company only have one of the previous owner's sign deed and title documents no the couple that used to own the property. Now the current owner is trying to short sale and the buyer's title company has not been able to find the previous seller to get a signed affidavit or get the previous documents signed correctly.
What is wrong with these title companies not doing a good job at their title research. These are really dumb mistakes. I know in the previouse 4 years, several title companies have gone out of business in the area, some owners are either in jail or have taken their lives because of the imbecilments and other iregularities with their business practices.
I hope in the near future the insurance commission takes more control and do better audits on the title companies to avoid these type of issues in the future, it is not fair for the seller, buyers lenders, agents and other title companies.
Comments
JOse,
You are not alone. I have had an occupied REO condo assignment for 60+ days and I had been unable to get the occupant to respond. We just found out we have the wrong unit number. No wonder they did not respond. I believe there were many errors made by the legal foreclosure mills and that is what has caused some of the. I have another one with the street name misspelled and that is how it was titled.
So frustrating, to say the least, right?
I just had a short sale on which my buyer waiting 5 month for the approvals and then on the day before the drop-dead date when we were expecting to record, title tells me there's hold up because they "just" discovered a lien against the seller's husband! What? The man was in his 70s and was no longer owner of the property.
I think "Murphy" just throws these things in the mix just so we have good stories to tell (and "season" us!).....otherwise where would the fun be, right? Happy Friday! :)