Foreclosure in Austin>Question Details

Cassie, Home Buyer in Austin, TX

What the results of my title search mean?

Asked by Cassie, Austin, TX Mon Mar 4, 2013

I just had a title search done through an online company for some properties that are going to auction. I understand most of what is on there, but I am confused about some of the mortgage information.

The thing I don't understand is that it lists "Open Mortgage/Deed of Trust Information", which contains about the stuff that I would expect.

Then later in the document it also lists "Additional Mortgage/Deed of Trust information" which contains various things depending on the home I'm looking at, but isn't listed under the UCC/Liens/Judgments section.

Can anyone give advice on how to interpret these "Additional Mortgages"? Are these typically second mortgages, or simply debt changing hands?

In one case I even have 2 people listed jointly under the Open Mortgage, and then under Additional Mortgages, one of the people is listed as the grantor with the other being the grantee for a DEED OF TRUST TO SECURE ASSUMPTION and DEED OF TRUST TO SECURE OWELTY OF
PARTITION.

thanks!

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Answers

3
You could have gone to a local, national, respected Title Company, where you would have gotten personal service and explanations about everything:

How much did you save?
0 votes Thank Flag Link Tue Mar 5, 2013
HI Cassie,

I specialize in foreclosures. The list that you are looking at while some of the information may be correct, much of listed is not as accurate as you may think. Many homes get pulled before Auction (up the hour of)...An Open Mortgage is mortgage that can be paid off prior to maturity without penalty. The Deed of Trust to Secure Assumption is a filing notice (either if one "spouse is divorcing the other and assuming the note, or it could be used by the bank and/ or the company hired in order to obtain the note because of foreclosure (deed in lieu of foreclosure comes in after the property actually is auctioned off). If you would like to run a search on filed docs from the official records search you can go to http://www.traviscountyclerk.org/eclerk/. Hope this helps and honestly without looking and researching the property I can only give limited knowledge. P.S. Just a heads up, we as Realtors can give you a list of anything on the Auction block for Free...So I always caution about paying for a service that charges you for the same list. Best of luck to you and today is Auction day!


Shannon Black-Hartzell
Market Point Realty Services
0 votes Thank Flag Link Tue Mar 5, 2013
Cassie, I'm guessing few agents have used an online title search company and as such, likely aren't familiar with the terminology since title commitments don't use this same language.

I would guess that Open Mortgages are just that...mortgages not yet released / paid off. Additional mortgages would seem to indicate these are HELOC's or other secondary loans.

When two parties are shown as Grantees and then one of the same parties is also shown on a subsequent deed as a grantor, this is generally due to divorce where one spouse purchases the home from the other spouse as prescribed in the divorce decree. Sounds like one spouse owner financed the property to the other spouse which would be consistent with the DOT to Secure Assumption and the Owelty Partition...in the event the owning spouse ever sells the home, a portion of the proceeds are owed to the former spouse.
0 votes Thank Flag Link Mon Mar 4, 2013
Oh, ok, that makes sense. So in those cases where there is a home equity line of credit or a secondary mortgage, buying the home at auction wouldn't clear that second mortgage since they could technically still be open, right?
Flag Mon Mar 4, 2013
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