Why Should You Get a Title Search on Your Destin Short Sale?

Great post with lots of detail on why to get a title search early on in the game.  You are spot on.

Wendy, this is a business practice that I have been trying to put into place. It sure does make our jobs easier.

Great advice Wendy. In my market. Palo Atlo and the Silicon Valley is is common practice to get a title search when taking a listing. The escow and title are done by the same company and they are happy to do it.

Wendy ... I run a title search profile on any Orange County, CA, property before I list to sell and put an offer in for a client to purchase.  Then we review, so that our clients know in advance what they can generally expect and to limit surprises later on.

A preliminary title report or at least a property profile at the time of listing is great advice!

I do question some of your conclusions.

"1. Seller is not aware of a mortgage." That means we may have never submitted a short sale package to this lender.  (Tells nothing about what you did! It tells either the seller doesn't know who now holds his mortgage or you've got a big title problem.)

2. Seller lists wrong mortgage companies on letter of authorization.  Again, this causes nothing but delays. (Again. It tells either the seller doesn't know who now holds his mortgage or you've got a big title problem.)

4. There is an IRS tax lien that must be resolved. Allow extra time to remove it.   (Very good advice. I'd point out that the IRS can be dealt with, if there is no equity left for them or it's in their best interest! Most liens can be droped with a repayment agreement and proof oft the frist payment.)

6. There is another title holder. If undisclosed early, time is lost locating the missing party, and ensuring he is cooperative in the sale.  (In witch case all your contracts are void!)

Bill

Wendy,

I had a refinance with an ex wife and an identical current wife, they were closing when the ex showed up at my office. It seems he'd stolen the ex's drivers license, she called him and her former step son gave her my name.

I called escrow and stopped the closing. Have you ever hat a cat fight in your lobby? I couldn't tell the women apart. Latter the guy explained he sent both wives to the same surgeon. Such is life in Las Vegas real estate!

Bill

Great Advice. We also keep an eye out on the HOA to make sure no liens show up during the short sale.

Great advice Wendy.  Who do you use to do the title search and more importantly, who pays for it?

We always order title searches at the beginning of the transaction. There are so many problems that can arise. Great advice!

Yes this is great advice.  thanks for highlighting the exact reason why!!  We are having issues right now with a local title company who refused to open escrow until short sale was approved by the bank.  Steam coming out my ears does not even begin to describe.  AND the buyer was putting money in escrow....we have ratified contracts.....bottom line after much discussion, they made an "exception".  What is really sad is we have done all our transactions with them and they pull this new guideline.  As soon as we said, ok we are pulling it from you, they said ok.

Yes this is great advice.  thanks for highlighting the exact reason why!!  We are having issues right now with a local title company who refused to open escrow until short sale was approved by the bank.  Steam coming out my ears does not even begin to describe.  AND the buyer was putting money in escrow....we have ratified contracts.....bottom line after much discussion, they made an "exception".  What is really sad is we have done all our transactions with them and they pull this new guideline.  As soon as we said, ok we are pulling it from you, they said ok.