Home Buying in Miami>Question Details

Chiniminnie, Home Buyer in Miami, FL

Judgments against previous owners title issues, how long does it take to clear?

Asked by Chiniminnie, Miami, FL Wed Mar 17, 2010

I'm in the process of purchasing a condo. It should closed on March. 05. but my title insurance company told me there's a minor title problem that the seller's attonery has to take care of it. so my realtor extanded the contact to April.05. I call every week to follow up the status of my case, now my title company's telling me the seller's attonery is taking care one more issue which is Judgments against previous owners. i want to know how long would it take to clear up the issue? i check the property file under govertment website, it has one attachment says" the undersigned clerk of this court certifies that a certificate of sale was executed and filed in this action on Oct 15,2009, for the property described herein and that objections to the sale have either not been filed within the time allowed by statutory law or, if filed, have been heard by the court." how long would it take to clear the title? should i give up on this and look for another house asap?

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It is our experience in St. Lucie that the Title company covers all leins against the property. In a short sale that we are currently working on the closing, the bank is paying liens placed by the city. There are "clearence house" title companies out there who are doing volumes of work on foreclosures and there are a lot of cloudy titles out there are a result. Please use a local reputable title company! Not all Title companies are created equel!

Debbie Albert
Coldwell Banker Residential
1 vote Thank Flag Link Wed Mar 17, 2010
If you want to cancel your contract, call your realtor right now to get her advice. She has access to attorneys for "free" if she isn't clear on your rights to cancel.

If you've chosen to NOT have Realtor as your Buyer's agent then you may have to hire an attorney!

Good luck!
Alma
1 vote Thank Flag Link Fri Mar 19, 2010
Chiniminnie, please see your purchase contract and addendum there is information explaining if the seller's has some title problems there is certain amount of time to be fix, if you already know since when you had this problem them count since that day and due to situation is TITLE PROBLEMS, them you have the choice to continue or walk out of contract. Seller's who has problems to close no you.
1 vote Thank Flag Link Fri Mar 19, 2010
Chiniminnie,

It depends on whether the current owner bought the property at the courthouse foreclosure auction or if they bought it "after" the lender took it back after foreclosure. If the current owner bought it at the courthouse and not from the lender then it will likely be the seller's responsibility to pay for any outstanding liens.

If the current owner bought the condo from the lender and got title insurance to assure "clear title" then the overdue property taxes should have been paid.

Ask your Realtor to call the title company to get a very clear understanding of why the closing is being delayed. The property taxes can normally be paid at closing so that shouldn't hold up the closing. The past due Condo fees and any attorney fees may actually be the problem. Some less than scrupulous Condo attorneys will attempt to collect legal fees (that they may not be legally entitled to) because they know they can hold up a sale. The condo association is also entitled to get 6 months of back condo assessments so that may be another cost the seller wasn't aware he had to pay.

If you are a first time homebuyer, you should go ahead and look at other properties until you can get confirmation that this will close well ahead of the April 30th deadline.
1 vote Thank Flag Link Fri Mar 19, 2010
Chiniminnie, Could be possible taxes issues. 2009 was as year where property loan includes PITI , ALL INCLUDED IN THE PAYMENT how taxes never paid for, I don't understand if they close with PITI, but has to be another lien like another mortgage that never foreclose. Some property in foreclosure come to court and foreclose one mortgage and them years after another appear to the scene. Suggestiong, sent me the property address, may be you can start with the listing agent before you sale they know about bank and all other information that you and me.
1 vote Thank Flag Link Fri Mar 19, 2010
Chiniminnie, some judgements like this are covered by the owner's policy in the period of the ownership, but let me tell something some company who sale this kind of owner's policy are in distress like other companies, so be sure the underwritter who sign at time of closing with previous owner respond for this mistake. I'm not sure but almost convince that underwritter has to response and that's take so long due to the previous owner need to go to the huge process to clarify all. It is your decision to wait, but is not going to be easy at all. I had this experience before.
1 vote Thank Flag Link Thu Mar 18, 2010
Hi Chiniminnie,

I wouldn't give up.... Is the seller on your contract showing up in public records as the owner?

It could be that the seller is trying to negotiate the payoff on xome of the liens. Also if there is an IRS lien, there is a certain waiting period before it will automatically go away without paying it.

I would ask your Realtor to call the title company doing the closing and ask for a direct answer as to exactly what the liens are and the amount and when they expect them to be cleared.


Good luck!
1 vote Thank Flag Link Thu Mar 18, 2010
You have to look at the foreclosure suit. If the certificate of title was issued to the bank, then they own the property. If there was a lien recorded against the house, and the lien-holder was not included in the foreclosure suit, then it could take time to clear, depending on the amount of the lien.
Your contract should have had a clause that gave the seller a specific period of time to clear title issues.
1 vote Thank Flag Link Wed Mar 17, 2010
Chiniminnie, judgements some time takes tooooo long depending in the kind of judgement place in the property title. Looks like this is a foreclosure property. Doesn't matter what is undersigned if there is another lien place or another mortgage that never been foreclose, so the procedure is going to be like going in foreclosure, everyone is going to be notify and procedure of law including terms has to comply. Look for another property.
1 vote Thank Flag Link Wed Mar 17, 2010
Chiniminnie, you really answer your own question, what is going to happen if .......IT IS RISK TO choose that option.
0 votes Thank Flag Link Fri Mar 19, 2010
MY REALTOR TOLD ME SELLERS' AGENT TOLD HER, IF I WANT TO CLOSE IT IS FINE. I CAN CLOSE AND MOVE IN. THEY WILL HOLD THE MONEY IN THE ESCOW ACCOUNT. MY TITLE COMPANY WON'T TRANSFER THE FOUNDS TO THE SELLER TILL THEY CLEAR THE TITLE. MY REALTOR TOLD ME THAT'S ONE OPTION. ISN'T THAT TOO RISKY? WHAT WILL HAPPEN IF THEY CAN'T CLEAR THE TITLE BY THE END? I WILL BECOME HOMELESS!
P.S. SELLER'S AGENT DIDN'T TELL MY REALTOR WHAT EXACTLLY IS THE TITLE ISSUE? JUST TOLD HER I HAVE THIS OPTION.

WHAT SHOULD I DO?
0 votes Thank Flag Link Fri Mar 19, 2010
if i back up now, beside the escow deposit i can get back, i will loose the rest , correct?
0 votes Thank Flag Link Fri Mar 19, 2010
i found out that the seller hasn't pay for the 2009 property tax, he bought the forclousre on Oct.2009, i guess he doesnt want to pay for everything. is it possible he's looking for the previous owner/bank to pay for the property tax . could that be the reason why the title hasn't been cleared yet?
0 votes Thank Flag Link Thu Mar 18, 2010
i forgot to mention, the is a regular resale, but the seller bought this property Oct. 2009 as forclosure. seems like he is the one didnt clear up the title problems when he got the house.
0 votes Thank Flag Link Wed Mar 17, 2010
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