11.17.07
Posted in Industry News, Judgment Searches, Land Title Technical Stuff at 1:02 pm by Jeanne
Nobody is thrilled about all the short sales and deeds in lieu. After all, Lenders do not want to accept less than they are owed and they are concerned that buyers may be getting below-market deals at their expense. Congress, HUD, FNMA, etc. are leaning on lenders have to figure out a way to reduce foreclosures. Public pressure and perceptions are driving the change as well. The lending industry has a major black eye. And, of course, the Borrowers do not want to lose that all-important credit rating, not to mention loss of their home. The international market is pulling out from buying pools of mortgages, seeing them as an untrustworthy investment. But, right now short sales, foreclosures and deeds in lieu are a fact of life.
Lenders are speculating that they may be buried by borrowers who could pay but don’t want to pay. They are requiring borrowers to demonstrate a financial hardship, such as a job loss or illness. Looking at pay stubs, bank accounts. Rather like the reverse of reviewing the loan all over again – to see the person can’t qualify. Even then, they’re skeptical when a deal is on the table.
In addition, title insurance companies are being asked to review the deal as well. After all, while a deed in lieu of foreclosure saves the lengthy and expensive process of foreclosure, it brings in all intervening liens. That means if there are judgments because credit cards are behind and there are corresponding judgments against the borrower, or there are outstanding child support liens, medical assistance liens, State or Federal Tax Liens, or a host of others, these liens will have priority over the deed in lieu, making the transaction very sticky, and perhaps impossible.
I am seeing droves of advertisements for books and classes to “Buy Foreclosures and Make Money!” I pity the person who believes these ads and loses their shirts on a business that is over the heads of most professionals in the industry.
Permalink
05.17.07
Posted in Judgment Searches at 6:04 pm by Jeanne
Jeanne - Do you recommend that we still have the sellers/buyers give a ten year history of their residences on their affidavits? We are still requiring our closers to do this. I, however, do not see the need to ask for this information. Just curious on what you are instructing your students to do on this form.
Arne R. Skatrud
Key Title, Inc.
Permalink
01.25.07
Posted in Judgment Searches at 4:07 pm by Jeanne
Jeanne - Do you recommend that we still have the sellers/buyers give a ten year history of their residences on their affidavits? We are still requiring our closers to do this. I, however, do not see the need to ask for this information. Just curious on what you are instructing your students to do on this form.
Arne R. Skatrud
Key Title, Inc.
Permalink
08.02.06
Posted in Judgment Searches, Land Title Technical Stuff at 3:50 pm by Jeanne
Jeanne, Just a question/comment on judgment searches. My office searched a name on two separate ocassions and by two different abstractors . Our worksheet indicates that the named was searched in July of 2005 and again approx 2 weeks later. Each time this name was searched at the County Court Administrator’s public terminal, the name showed “no judgments”. A commitment was prepared by an attorney last month in preparation of a sale and a judgment came up which should have appeared on the prior two searches previously done by this office. I am perplexed because we understand the implications in missing a judgment and are very careful. In addition, I can almost see missing a name once, buy not twice and by two different competent researchers. I have not talked with the County Court Administrator yet because she is on vacation, but just thought maybe I’d contact you as to how to handle this situation. I am willing to pay the judgment, however, it is considerable - $5,000.00. Could Court Administration have noticed that this judgment was not entered into their system and placed in in after we had checked the name in July of 2005? Anyway, I want to protect myself in the future. I’m thinking that I would like to obtain a print out from Court Administration showing that the name was actually searched, spelled correctly, and all possible deviations of the name was searched. I, of course, have the office “work product” showing how the name was searched, but I don’t think that is sufficient evidence to prove we searched accurately. Is it unrealistic for me to ask that Court Administration give us the ability to prove our searches thru their system? Thanks for your thoughts.
Sue Nielsen Kanabec County Abstract Co., Inc.
Permalink