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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] County Records, Sales Price, Appraisers and Lenders Posted by Jeffrey Rollins on January 26, 2010 at 11:18 AM When buying at the trustee sale we purchase that deed of trust's interest in that home, sometimes these are even second position notes we purchase. When we record our Trustee's Deed at the county recorder they record us as the new owner and the sales price as the price we paid at the trustee's sale. They fail to convey that this "sales price" is subject to other debts and is not a traditional sale where we are conveyed clear title for the price paid. For example we may pay 200 hundred thousand, receive title to a home that is worth 400 hundred thousand, but may have 150 thousand in other liens that we must pay when we re-sell the home. The county recorded will show the previous sales price as 200 thousand. Many guidelines for lending mention previous sales price and a limit on the amount the property can "appreciate" in that period of time. In this example, they would claim we paid 200, that we are re-selling for 400 and this is "too much". Many MI companies have guidelines against this sort of "flipping", and the underwriters are forced to deny the loan. Can the county recorded really claim that was the "sale price" for a property when someone is purchasing a second deed of trust? What can we do about this? In the past the LO or Appraiser submits an explanation. This sometimes works, sometimes doesn't. Any advice from people that have this problem? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : When buying at the trustee sale we purchase that deed of trust's interest in that home, sometimes these are even second position notes we purchase. When we record our Trustee's Deed at the county recorder they record us as the new owner and the sales price as the price we paid at the trustee's sale. They fail to convey that this "sales price" is subject to other debts and is not a traditional sale where we are conveyed clear title for the price paid. : For example we may pay 200 hundred thousand, receive title to a home that is worth 400 hundred thousand, but may have 150 thousand in other liens that we must pay when we re-sell the home. The county recorded will show the previous sales price as 200 thousand. : Many guidelines for lending mention previous sales price and a limit on the amount the property can "appreciate" in that period of time. : In this example, they would claim we paid 200, that we are re-selling for 400 and this is "too much". Many MI companies have guidelines against this sort of "flipping", and the underwriters are forced to deny the loan. : Can the county recorded really claim that was the "sale price" for a property when someone is purchasing a second deed of trust? What can we do about this? : In the past the LO or Appraiser submits an explanation. This sometimes works, sometimes doesn't. Any advice from people that have this problem? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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