Hello again my friends, 
A chain of title, you ask? Every lender typically requires it. It is includeded in most title commitments and final policies and then recorded as a matter of public record, so what the heck is it?
Very simply, it is a system of recording the different owners and the transfers of a particular piece of property or real estate. Title Insurance companies (Fidelity National, Chicago Title, Old Republic, to name a few) in the United States issue a title insurance policy based on the chain of title when it is transferred from one owner to another. In addition, because it is a matter of public record, many lenders use this information to determine how long ago the current owners took possession of the property and how many times it has transferred, usually in a 24 month period. In most cases, this information is established by a title abstract.
Here is how a chain of title may look:
Ben Franklin grantor to George Washington grantee
George Washington grantor to John Adams grantee
John Adams grantor to Andrew Jackson grantee
Andrew Jackson grantor to James K Polk grantee
James K Polk grantor to Abraham Lincoln grantee
Abraham Lincoln grantor to Ulysses S Grant grantee
Ulysses S Grant grantor to Chester B Arthur grantee
Chester B Arthur grantor to Woodrow Wilson grantee
Woodrow Wilson grantor to Harry S Truman grantee
Harry S Truman grantor to Lyndon B Johnson grantee
Lyndon B Johnson grantor to Ronald Reagan grantee
Ronald Reagan grantor to Bill Clinton grantee
If the deed for the transfer from Grant to Arthur is missing, then the chain would be broken.
One last really funny story to simply rap it up.....................
A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the Lawyer three months to track down. After sending the information to FHA, he received the following reply.
(actual letter): "Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."
Annoyed, the lawyer responded as follows. (actual letter): "Your letter regarding title in Case No. 189156 has been received. I note that you wish to have title extended further than the 194 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased, by the U.S., from France in 1803, the year of origin identified in our application. For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Isabella. The good queen, Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus' expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana. God, therefore, would be the owner of origin and His origins date back, to before the beginning of time, the world as we know it AND the FHA. I hope you at the FHA find God's original claim to be satisfactory. Now, may we have our loan? The loan was approved
Have a great weekend!
Thanks for stopping by
To your success
Until next time my friends,
LEADING EDGE TITLE SOLUTIONS
Matching experience with technology to give
you the edge to be a mortgage industry leader
Bo Hussung
Vice President of Sales
phone ~ 615-438-7300 fax ~ 678-261-1594
email me ~ bhussung@cogentca.com
web ~ www.cogentca.com
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