1264 Tomahawk closed but not without a price paid by the Sellers!
1264 Tomahawk located in Indian Ridge Subdivision in Moss Bluff, LA is a 5 bedroom 3 bath 2265 sq ft home. The property was listed on the market for 135 days which is just a little over the average for Southwest Louisiana. Most Lake Charles homes for sale sell within 120 days and this number is shortening due to the lack of inventory we currently have available of homes under $200,000
TITLE MUST BE REVIEWED
When buyers and sellers approach closing date, during the interim period, the Title Company is reviewing the title on the property and issuing the title commitment to the buyer's lender. Merchantable Title must be delivered to the Buyer . There is language in the Louisiana Agreement to Buy/Sell that addresses the merchantable title. Should the Seller not be able to provide a "clear merchantable title" the contract can be declared null and void.
TITLE ISSUES MUST BE CLEARED
Title issues do arise and it is not uncommon for a correction to be made that could be something like a missed signature or succession document that needs to be filed in the courthouse records. However when a lien or "surprise" mortgage is discovered this requires more diligence to clear due to the property being used as collateral. This was the case in the sale of 1264 Tomahawk when the real estate attorney discovered an outstanding small business authority (SBA Loan) in the amount of $10,000 filed in 2006!! The Sellers neglected to disclose this fact on the Louisiana Property Disclosures and to the Listing Agent! Without the Notice of Seizure filed and attached to the residential property being paid off and recorded as clear, the sale of 1264 Tomahawk could not occur.
SELLERS SHOULD DISCLOSE ALL KNOWN ISSUES AT THE TIME OF LISTING
Homeowners and Sellers should always disclose any mortgage or outstanding loan connected to the property to the listing agent. Usually this is done at the time of the listing when the Realtor is going over the list price, market analysis and expense connected witht he sale of the home. Sellers always ask the question what are the costs of selling my home. Most Sellers have an idea what their payoff is and can factor that into the calculations associated with the listing and sale of their home. It is important for the listing agent to know the seller's position in order to be able to advise and negotiate a contract in the Seller's best interest
No one likes surprises especially at the closing table!
24 hours before closing when the HUD was being prepared and payoffs obtained by the Title Company it was discovered that the Sellers of Tomahawk had just re-financed the house in 2012..... so there went the equity! The Sellers were already taking a $10,000 loss on the sale of their home and did not have enough proceeds in the sale to cover the outstanding $10,000 SBA Loan in addition to the mortgage payoff.
1264 Tomahawk did close but not without a price by the Sellers to the tune of $21,000 at closing!