Isn't it great when you learn something new? Isn't it better when it comes to you in the way of help, and not by the way of hard knocks? I found out something that totally saved the sale of my listing.
This particular listing I'm working with both sides..my buyer came from an open house that I held three weeks ago and we are going to close tomorrow. After I received the title commitment last Thursday, I thought it was going to go up in smoke when I read that my buyers have an IRS lein for $5400...There goes any chance of title insurance...
Soon after I received the news, the escrow agent called me and asked if I had read the commitment yet and of course I had. I did not know what to do...I called my buyer, and told her that had shown up on the report and we are at a stand still..She was upset, of course..she was hoping it would have been erased since she and her husband paid off the lein a few weeks ago. Unfortunately it takes a while for the IRS to release tax leins and it would probably be anothr month at least until it would be released and off the records..I felt really bad and wished that I could do somethig so that she could move into this house.
When I hung up the phone with my client, I called my partner and freind and broke the news to her. (She and I were co-listing the home.) My partner, who has been in the business for only 2 years longer than I have tells me that this may not be as big of a problem as we were thinking...She tells me that the buyers can give money to the title company for them to hold until the lein clears off the records. This will be a security for the title company, therefore they will issue title insurance!! The amount given to the title company is the amount of the lein X 3..about $16,000.
WhooPEEE!! I called my buyer, told her of the plan, and she said that she would be able to do this, spoke to the lender, and all is well.. we are back on track to close tomorrow!!
I will remember this in the future... I hope this information will be of use to some of you as well!!
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