DARK SKIES AND CLOUDY TITLES!

By
Real Estate Agent with Chevaux Group, PLLC

 

DARK SKIES AND CLOUDY TITLES!  I am seeing an increase in the number of title searches that are coming up cloudy!  IRS liens, secondary liens from loans, etc. are the turning the days of clear title searches into very cloudy days!

This of course becomes a problem when a Seller needs to sell their home!  Recently on a transaction we actually had a very good experience with the IRS.  I know, hard to believe but true.

The Sellers had an existing lien from a private lender that would take most of the proceeds at closing.  The IRS had put a lien as well even though this was not the Sellers main residence.  Therefore, until the IRS released their lien and just encumbered the main residence, this townhouse was not going to close.

The Sellers diligently worked with the IRS and got to a person who walked them through the process and voila - they released the lien yesterday and we close today!  We were all in shock as we all know how slowly the IRS can be in responding.

The lesson learned here is to talk with Sellers about possible liens and how to get them dealt with effectively.  Also, having a strong Title Company to work with along with and agents who work together to deal with problems is the key!

In these difficult days, I believe we will see more of this going on.

Posted by

     Chevaux Group    

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®

       Broker ~ The Woodlands, Texas 

 936-203-0279 Direct

Selling The Woodlands real estate and surrounding areas!

Paula@ChevauxGroup.com

 

 

Copyright 2014 Paula McDonald

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Topic:
ActiveRain Community
Groups:
MONTGOMERY COUNTY TEXAS
Texas Real Estate
The Woodlands Real Estate
Tags:
real estate
sellers
closing
cloudy title
title encumberances

Comments 15 New Comment

Show All Comments
Rainer
276,790
Kathryn Maguire
Serving Chesapeake, Norfolk, VA Beach
GreatNorfolkHomes.com (757) 560-0881

Yet another factor that makes our careers so interesting and fun!  We are seeing these as well in Virginia.  Sign of the times...

September 10, 2010 09:28 AM
Rainmaker
783,071
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

So right Kathryn.  We will all need to exhibit patience and team work to get through these.

September 10, 2010 09:30 AM
Rainmaker
310,491
Ernie Steele
Lebanon, PA Real Estate 717-273-3774
Berkshire Hathaway HomeServices Homesale Realty

We just had a title problem for a property bought at a tax sale several years ago...The title insurance company wouldn't cover it because they said there was no proof the original owner was ever notified of the sale...My seller, who bought it at the tax sale, allowed the seller at that time into the house afterwards to remove their belongings...But, no records...It's a mess...Enjoy the day.

September 10, 2010 09:31 AM
Rainmaker
783,071
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

Wow now that is an interesting on Ernie.  Keep us posted on what comes of this.

September 10, 2010 09:33 AM
Rainmaker
447,863
Malcolm Johnston
Trenton Real Estate
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario

One of my bank sale listings sold a couple of months ago but it can't close. Revenue Canada has a lien on the property that is larger than the place is worth.  Trying to work with Revenue Canada is like wading through molasses. I bet they are worse than the IRS.

I suppose these type of things occur more frequently in troubled financial times.

September 10, 2010 09:39 AM
Rainmaker
84,095
Terri Adams-Scott
Realtor, Walnut Creek CA Real Estate
J. Rockcliff, REALTORS

Paula - Glad to hear this all worked out!  I always like to pull a prelim at listing time just so we know upfront if there are any challenges that need to be worked out.  I had a client where they owned their home free and clear...but their payoff never got reconveyed or recorded!  Took a good month to get it straightened out, but with the advance knowledge we had it taken care of before the close.  Congrats to your sellers! 

September 10, 2010 09:39 AM
Rainmaker
967,856
Edward & Celia Maddox
We Take The High Road
Solutions Real Estate

With the tought ecomomy, we are starting to see this type of liens.  Got to what it carefully for our buyers.

September 10, 2010 09:42 AM
Rainmaker
617,392
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise

Oh yikes...just another hurdle we will have to jump through....I am seeing all sorts of crazy things on Title these days...weird easements that no one has records of....or they show up the last day...another that had one price but in order to buy the rest of the property....we have to pay additional dollars....and the rest of the property goes across thier patio and includes the septic drainfield!??!!   It is getting crazier every day! 

September 10, 2010 09:47 AM
Rainmaker
783,071
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

We are all getting educated on some really challenging transactions.  I for one believe it will make us that much better of agents in the long run.

September 10, 2010 09:49 AM
Ambassador
536,756
Gerry Michaels
GettysburgGerry Social Meida
Glasswork Media Arts

Sounds like you got through on the lucky side, I see most cases coming out like Ernies with no resolution in sight, I have to say Kathryn, interesting yes, fun NO....LOL Gotta keep your sense of humor

September 10, 2010 10:42 AM
Rainer
94,507
Billi Evans
Murney Associates

It makes me so happy when my side gets to pick the title/closing company for reasons such as this.

September 10, 2010 10:52 AM
Rainmaker
791,263
Al Raymondi
Ormond By The Sea Florida - Home and Condo Sales a
Ocean View Realty Group in Ormond By The Sea Florida

We are seeing More title issues as well and having a closing agent willing to work them out is a huge advantage..

September 10, 2010 11:59 AM
Rainmaker
556,060
Cherise Selley
Colorado Springs Realtor
Selley Group Real Estate, LLC

This is one significant reason why I'm helping Cherise with her blogs.  She spends much more time troubleshooting than ever before... g

September 10, 2010 03:43 PM
Rainer
73,993
Jennifer Dulmaine
Seth Campbell Realty Group
Keller Williams Realty

Paula, So true it seems like more and more there are "other" liens on the property. Thanks for sharing Jen

September 10, 2010 11:51 PM
Rainmaker
777,308
Richard Weeks
Realtor, Associate Broker - Manager Business Development
Waller Group

Sometimes it is best just to open title as soon as you take the listing.

September 11, 2010 07:06 AM
Show All Comments
Rainmaker
783,071

Paula McDonald

CHEVAUX Group ~ The Woodlands, TX 936-203-0279
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