Home Buying in 55303>Question Details

Ldfrench, Home Buyer in Ramsey, MN

Since5/2009 when my bid on a HUD home was accepted, Closing date keeps getting put off as Title Company does not have the clear to close as of 11/3/09

Asked by Ldfrench, Ramsey, MN Mon Nov 2, 2009

Who oversees the HUD and title company they use to close?

Help the community by answering this question:


The answers you have been given are correct. There may be what is known in real estate as "clouds" on the title and you really have to be grateful for the diligence of your title representative. These clouds can be cleared, and it is not only HUD homes that have these. I sold a property that had been in the same family since MN was only a territory and in our due diligence we discovered that there was no title filed, ever, and that the original land grant was missing. A new abstract had to be created. Another way Title can be protected if there is no hard copy to be found is through Title insurance. That is why we have Title Owners' policies which protect you in case some unforeseen claim can, in spite of all the searches, appears. Your title company will trace all those, individuals, corporations, municipalities, utility companies, etc, who may have had a lien against the property at some time. If needed, they will get "quit claims" from these people or lien releases to make sure that all possible claims, liens or other "clouds" created through death, divorce, wills or lack of wills have cleared the skies. Liz, 612-986-4105
0 votes Thank Flag Link Tue Nov 3, 2009
I am an REO listing agent (bank owned homes). While this doesn't happen often, it does happen. In fact, I have a similiar issue with one of my properties right now.

Title problems do come up. With all the selling of mortgages and mortgage backed securities title can become confused. Possibly there is a third party involved and HUD was not aware of it.

They will get it straightened out. Just remember that it is not the title company's fault. Keep in regular contact but not so much that you are a bother. And an occasional thank you is always welcome.

Best wishes,

0 votes Thank Flag Link Tue Nov 3, 2009
Wrong question.

You need to check with the title company to see what's holding things up, and you need to be thankful that the title company is doing its job to protect you. It's entirely possible that there are environmental liens, tax liens, various mechanics liens, or other liens that need to be cleared. It's also possible that the chain of title isn't clean, and needs to be fix before that--or any other--title company can issue a full warranty deed. Otherwise, you might not be able to sell this property free and clear later on.
0 votes Thank Flag Link Mon Nov 2, 2009
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