Foreclosure in Acton>Question Details

Reoman, Real Estate Pro in Acton, MA

Title Issues??

Asked by Reoman, Acton, MA Mon Jul 6, 2009

I am currently interested in a Fannie Mae property. It went under agreement three times and it fell though (at closing) for the third time...



The first time it was financing...the second time it was also financin---well according to the listing agent...



The third time the deal went all the way to closing (I was not the buyer) and I was hopeing it would fall though...



Anyway, so it went off the market and didn't close so I assumed it fell though....



So I e-mailed the listing agent and he said that the property didn't close due to title issues.



What could this mean?



I tried to find out from the listing agent but he didn't really want to tell me...


He also said that when the title issues are resolved it will return to the MLS...

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Answers

5
It sounds like they couldn't produce a clear title. Title issues can range from simple to complex. Some exammples: improper posting for the foreclosure period, a boundary dispute, a lien on the property that they didn't know about, an improperly discharged prior mortgage. Some are easier to clean up than others.

If you are buying a foreclosed property, be sure to have a good attorney representing you!
Web Reference: http://homes.debn.net
1 vote Thank Flag Link Mon Jul 6, 2009
A title is a legal document that establishes proof of ownership of a property. Issues can arise if there are outstanding problems regarding the property. Such issues can be fraud, forgery, contested ownership, missing wills, and if documents weren’t processed properly. Title issues could take weeks or years to work on depending on the nature of the dispute.

Based on what you have stated, I would reconsider this property or would proceed with caution.
0 votes Thank Flag Link Wed Sep 29, 2010
It could be a couple things that went wrong. I list a couple that come to my mind:
Problem with the foreclosure making it so the lender needs to re-foreclose.
Easement or enchrochment issues that need to be resolved with the neighors.
Possibly land locked with no access to the property.
Other liens that need to be resolved.
Issues with the timing of recording of the various liens. If something was recorded before the primary lien it would create a big issue for the primary lien.

These are the issues that I can think of quickly and should give you an idea of what might be happening.


Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wiscosnin
0 votes Thank Flag Link Mon Jul 6, 2009
You could also hire your own title examiner to find out the reason for the title issues, ask your attorney for a referral to the title examiner they use. It'll be on your dime but they should be able to clarify what the issue is and give you a better idea of the job to clear it up.
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Mon Jul 6, 2009
Hello- Title issues will often become financing issues, as the lender will conduct a full title search, and will dig pretty deep especially if it is a REO (bank or Fannie) owned property. So my guess is there is some issue or cloud in the chain of title that needs to be resolved, and that can take a while to research and track down the names of people involved to rectify or get affadavits, etc.
Sometimes these things can take many months or years. Might be better to look at another property on the market. Thanks and good luck,

Ken L.
0 votes Thank Flag Link Mon Jul 6, 2009
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