DARK SKIES AND CLOUDY TITLES!

By
Real Estate Broker/Owner with CHEVAUX Group, PLLC TREC #547752

 

DARK SKIES AND CLOUDY TITLES!  I am seeing an increase in the number of title searches that are coming up cloudy!  IRS liens, secondary liens from loans, etc. are the turning the days of clear title searches into very cloudy days!

This of course becomes a problem when a Seller needs to sell their home!  Recently on a transaction we actually had a very good experience with the IRS.  I know, hard to believe but true.

The Sellers had an existing lien from a private lender that would take most of the proceeds at closing.  The IRS had put a lien as well even though this was not the Sellers main residence.  Therefore, until the IRS released their lien and just encumbered the main residence, this townhouse was not going to close.

The Sellers diligently worked with the IRS and got to a person who walked them through the process and voila - they released the lien yesterday and we close today!  We were all in shock as we all know how slowly the IRS can be in responding.

The lesson learned here is to talk with Sellers about possible liens and how to get them dealt with effectively.  Also, having a strong Title Company to work with along with and agents who work together to deal with problems is the key!

In these difficult days, I believe we will see more of this going on.

Posted by

C21 logo     Chevaux Group    

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®

       Broker Associate ~ Granbury, Texas 

 936-203-0279 Direct

Selling Hood County and surrounding areas!

Paula@ChevauxGroup.com

      CNE

Houzz      

 John Maxwell

Farm & Ranch

 

Million DollarInstitute for Luxury Home MarketingCILHM Designation    ABR

 

 

Copyright 2016 Paula McDonald

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MONTGOMERY COUNTY TEXAS
Tags:
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Rainer
277,489
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Yet another factor that makes our careers so interesting and fun!  We are seeing these as well in Virginia.  Sign of the times...

Sep 10, 2010 02:28 AM #1
Rainmaker
1,045,639
Paula McDonald
CHEVAUX Group, PLLC - The Woodlands, TX
CHEVAUX Group ~ Granbury, TX 936-203-0279

So right Kathryn.  We will all need to exhibit patience and team work to get through these.

Sep 10, 2010 02:30 AM #2
Rainmaker
414,448
Ernie Steele
Berkshire Hathaway HomeServices Homesale Realty - Lebanon, PA
Lebanon, PA Real Estate 717-273-3774

We just had a title problem for a property bought at a tax sale several years ago...The title insurance company wouldn't cover it because they said there was no proof the original owner was ever notified of the sale...My seller, who bought it at the tax sale, allowed the seller at that time into the house afterwards to remove their belongings...But, no records...It's a mess...Enjoy the day.

Sep 10, 2010 02:31 AM #3
Rainmaker
1,045,639
Paula McDonald
CHEVAUX Group, PLLC - The Woodlands, TX
CHEVAUX Group ~ Granbury, TX 936-203-0279

Wow now that is an interesting on Ernie.  Keep us posted on what comes of this.

Sep 10, 2010 02:33 AM #4
Rainmaker
448,571
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

One of my bank sale listings sold a couple of months ago but it can't close. Revenue Canada has a lien on the property that is larger than the place is worth.  Trying to work with Revenue Canada is like wading through molasses. I bet they are worse than the IRS.

I suppose these type of things occur more frequently in troubled financial times.

Sep 10, 2010 02:39 AM #5
Rainmaker
84,306
Terri Adams-Scott
J. Rockcliff, REALTORS - Walnut Creek, CA
Realtor, Walnut Creek CA Real Estate

Paula - Glad to hear this all worked out!  I always like to pull a prelim at listing time just so we know upfront if there are any challenges that need to be worked out.  I had a client where they owned their home free and clear...but their payoff never got reconveyed or recorded!  Took a good month to get it straightened out, but with the advance knowledge we had it taken care of before the close.  Congrats to your sellers! 

Sep 10, 2010 02:39 AM #6
Rainmaker
1,222,424
Edward & Celia Maddox
Solutions Real Estate - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

With the tought ecomomy, we are starting to see this type of liens.  Got to what it carefully for our buyers.

Sep 10, 2010 02:42 AM #7
Rainmaker
620,028
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Oh yikes...just another hurdle we will have to jump through....I am seeing all sorts of crazy things on Title these days...weird easements that no one has records of....or they show up the last day...another that had one price but in order to buy the rest of the property....we have to pay additional dollars....and the rest of the property goes across thier patio and includes the septic drainfield!??!!   It is getting crazier every day! 

Sep 10, 2010 02:47 AM #8
Rainmaker
1,045,639
Paula McDonald
CHEVAUX Group, PLLC - The Woodlands, TX
CHEVAUX Group ~ Granbury, TX 936-203-0279

We are all getting educated on some really challenging transactions.  I for one believe it will make us that much better of agents in the long run.

Sep 10, 2010 02:49 AM #9
Ambassador
540,742
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Sounds like you got through on the lucky side, I see most cases coming out like Ernies with no resolution in sight, I have to say Kathryn, interesting yes, fun NO....LOL Gotta keep your sense of humor

Sep 10, 2010 03:42 AM #10
Rainer
94,565
Billi Evans
Murney Associates - Springfield, MO

It makes me so happy when my side gets to pick the title/closing company for reasons such as this.

Sep 10, 2010 03:52 AM #11
Rainmaker
928,702
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales a

We are seeing More title issues as well and having a closing agent willing to work them out is a huge advantage..

Sep 10, 2010 04:59 AM #12
Rainmaker
557,207
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

This is one significant reason why I'm helping Cherise with her blogs.  She spends much more time troubleshooting than ever before... g

Sep 10, 2010 08:43 AM #13
Rainer
74,249
Jennifer Dulmaine
Keller Williams Realty - Spencer, MA
Seth Campbell Realty Group

Paula, So true it seems like more and more there are "other" liens on the property. Thanks for sharing Jen

Sep 10, 2010 04:51 PM #14
Rainmaker
1,787,068
Richard Weeks
Dallas, TX
REALTOR®, Broker

Sometimes it is best just to open title as soon as you take the listing.

Sep 11, 2010 12:06 AM #15
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Paula McDonald

CHEVAUX Group ~ Granbury, TX 936-203-0279
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