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.