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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Title Companies don't call the shots... Posted by Rick Harmon on December 07, 2003 at 12:46 AM In Reply to: Don't believe it... posted by Ward-CA- on December 07, 2003 at 9:43 AM : Sara, : There are many instances where the name of the property’s tax payer is not the same name as the name of the original loan borrower. : That’s the case where property taxes are paid out of the lender’s impound account and not by the home owner. So how does that square with what your title officer said? : What I would do is find out the facts for myself first hand. Go visit the County offices and talk with someone there who can tell you if this issue is actually true. : To me it’s unimaginable that the Santa Clara County would spend it’s time and resources doing such investigations and reporting when it’s none of their business and has nothing to do with any county purpose. : And I’m positive you don’t need a special cadre of professionals to help to take title to property subject to the existing financing. Just find those individuals who are known for doing their particular tasks in an expeditious and professional manner. : Hope this helps. ======================================= Sara- Title companies only insure title; they don't have any say as to what you do or don't do unless another party is also dependant on their policy. If you want to purchase a policy and not have marketable title, they're OK with that. There is a practical side that says: if it's not an insurable transaction, your outta-luck on the resale or refi side. Any title company should be pleased as punch to insure your transaction if you will accept the exceptions listed. If that includes some old liens, an ancient TD from the 1960's that was never reconveyed, uncle Freddie on title, etc. they will give you a policy. What I have done in the past is requested "title only" services and given my T.O. a transmittal letter detailing what exceptions are to remain (like TD's, liens, etc.). I'm responsible to get the payoff balances, if any, or except them as they are. If it's a defaulted trust deed, I may not have time to get a bene statement so I'll get a payoff demand and guestimate what would remain. Meanwhile, I will get a reinstatement demand from the forclosing lender's trustee and correlate the two figures. Not a perfect system as I learned this last week when a probate client's first TD has $48,000+ in accrued interest on a $112,000 1st. Old Republic is my title company, too. The head Kahuna is a friend of mine and we often get into "interesting" conversations because of the weird stuff I bring them. They'll never balk at insuring what they see as long as I'm willing to accept the defects. However, just because you'll accept a clouded title (that you will fix later) doesn't mean a new lender would accept it pimples, warts and all. If no one else has a say and you know what to do to correct the problems later, by all means get it done. Rick Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Sara, : : There are many instances where the name of the property’s tax payer is not the same name as the name of the original loan borrower. : : That’s the case where property taxes are paid out of the lender’s impound account and not by the home owner. So how does that square with what your title officer said? : : What I would do is find out the facts for myself first hand. Go visit the County offices and talk with someone there who can tell you if this issue is actually true. : : To me it’s unimaginable that the Santa Clara County would spend it’s time and resources doing such investigations and reporting when it’s none of their business and has nothing to do with any county purpose. : : And I’m positive you don’t need a special cadre of professionals to help to take title to property subject to the existing financing. Just find those individuals who are known for doing their particular tasks in an expeditious and professional manner. : : Hope this helps. : ======================================= : Sara- : Title companies only insure title; they don't have any say as to what you do or don't do unless another party is also dependant on their policy. If you want to purchase a policy and not have marketable title, they're OK with that. There is a practical side that says: if it's not an insurable transaction, your outta-luck on the resale or refi side. Any title company should be pleased as punch to insure your transaction if you will accept the exceptions listed. If that includes some old liens, an ancient TD from the 1960's that was never reconveyed, uncle Freddie on title, etc. they will give you a policy. : What I have done in the past is requested "title only" services and given my T.O. a transmittal letter detailing what exceptions are to remain (like TD's, liens, etc.). I'm responsible to get the payoff balances, if any, or except them as they are. If it's a defaulted trust deed, I may not have time to get a bene statement so I'll get a payoff demand and guestimate what would remain. Meanwhile, I will get a reinstatement demand from the forclosing lender's trustee and correlate the two figures. Not a perfect system as I learned this last week when a probate client's first TD has $48,000+ in accrued interest on a $112,000 1st. : Old Republic is my title company, too. The head Kahuna is a friend of mine and we often get into "interesting" conversations because of the weird stuff I bring them. They'll never balk at insuring what they see as long as I'm willing to accept the defects. However, just because you'll accept a clouded title (that you will fix later) doesn't mean a new lender would accept it pimples, warts and all. If no one else has a say and you know what to do to correct the problems later, by all means get it done. : Rick Optional Link URL: Link Title: Optional Image URL: [ 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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