REO... Title insurable? REO's selling as is..? asset manager at arms length?

By
Real Estate Agent with Frank Cash, Realtor (Sole Proprietor)

Title insurable, One thing I have learned with Foreclosures is that Title will not insure unless a bunch of new conditions need to be met especially with REO's. One of which is that the previous owner "must not" have been foreclosed on while on active duty. One big problem presented itself. Where is the owner now? I guess the asset managers need to add that to their checklist of things to record is the fact of the previous owner (on title) social security numbers and the fact that the previous owner was "NOT" in the service on active duty when the home was foreclosed on. We thought we had an easy transaction, All cash buyer, no contingencies (other than home inspection) close ASAP... NO-way not with an REO...We are still trying to track down the spouse of one such previous owner, and to make matters worse, when the property was recorded as an REO in conveyance docs, the asset manager recorded the wrong price, so now we have to fix that as well.

One way to fix that is to have title companies tell the REO asset managers what the requirements are to title insure a property prior to them listing for sale, rather cause emotional stress to the buyer that has spent $1000's of time and money inspecting the property only to find out later from title that it is not title insurable until the asset manager does their job of finding where the owner is, get their social security number and check for military status. Its too bad the bank/asset manager wants you inspect the home in 10 days, Bank picks their title company then the title report comes after you and your client do your due dilligence. Just think if an appraisal was done also...

I know what I am adding to my REO checklist. Prelim title and commitment from bank prior to offer submittance.

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Rainmaker
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Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Frank, This may be coming up more these days with so many people serving overseas while their spouses have lost their jobs and may be headed for foreclosure.  I wonder if most spouses of service men and women know that they have to rights when it comes to foreclosure. And it is certainly worth our asking the listing agent for the bank about the status of the former owners.

Aug 04, 2010 08:28 PM #1
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Rainer
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Frank Cash

RB, ABR, Ecobroker
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