Home Buying in 55407>Question Details

Kate, Home Buyer in Minneapolis, MN

Judgments found in title work! Help!

Asked by Kate, Minneapolis, MN Mon May 18, 2009

Hi,

I am supposed to close on my new house on Friday. 5 days!!! The title work on my side came back fine I was told. The seller (the bank) just told us that the title work on their side just came back with 3 judgments on the property. What does this mean???? Why are there two different groups of people doing title work? Is this going to delay my closing? Is there anything I ca do? Please help!!!

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they have to investigate the liens on the property and pay them off if necessary. If they've already been paid off, they need to be able to prove it and show it to satisfy the title. I understand that you are worrying about whether you will be able to close in 5 days - but please believe me. You don't want to close without clear title. If you were to do so, those judgements become your problem and your debt. It is good that they are doing their job well and have found them. I don't know why your side was trying (obviously unsuccessfully) to check the title. It is usually the seller's responsibility to provide clear title. Take deep breathe, stay calm. They will resolve the issues - they want to sell you the house. You must not accept anything other than a clear title.
1 vote Thank Flag Link Mon May 18, 2009
Kate,
The seller has to give you "clear title", so that means no judgments, liens, encumbrances. Depending on what your contract says, the bank probably has to pay them off in order to sell the property to you. It is odd that they found these at this point in the transaction. Typically, banks have title work done before putting properties for sale so they are very clear about any outstanding obligations.
Hopefully, the bank will pay them off. Good luck.
1 vote Thank Flag Link Mon May 18, 2009
First...don't panic, I know it's easy to do when you are down to the wire. But this can happen, especially in the kind of market we are in...with foreclosures and short sales, if people are not paying their mortgages they are not paying their other debt.
Thankfully this happened before escrow closed, as I had one that was after we closed and it is a real mess.
The title and escrow department will work on getting the demand from the lienholder and seeing that it is released before escrow is closed. Actually all parties should be diligent in getting it resolved including the agents, lender, title and escrow.
Take a deep breath....and things will work out...good luck
0 votes Thank Flag Link Mon May 18, 2009
You have closers working for you and title searches for both sides checking all the details. You need to make sure you have clear title. That is what the seller, whoever it may be, promises you in the purchase agreement and at the closing. The delay will be worth it because it does clear the title. Sometimes these are quite simple and there is documentation; the closers find it, file it with the closing documents and you can sleep well knowing you truly own your home. Liz, Associates Realty 612=986-4105
0 votes Thank Flag Link Mon May 18, 2009
One thing to add is this: if you are paying cash, you may have an option to assume any liens (I don't know why you would want to, but... you may have an option). However, if you are taking out a mortgage, the new lender will not let you close assuming liens/judgments.
0 votes Thank Flag Link Mon May 18, 2009
The answer is: it depends. Remember, when dealing with a bank, the process takes longer than when dealing with a private owner who can make a decision instantly. The get the numbers together and then submit it for approval. So, it depends on the bank, it may take a day, or it may take 5 days. You need to get details from your Realtor and/or from your closer.
0 votes Thank Flag Link Mon May 18, 2009
What is the process to go about clearing the title? Can this be done in 5 days?
0 votes Thank Flag Link Mon May 18, 2009
They have to provide you with clear title - so it is their problem. It may delay your closing though. Your attorney should be able to provide you with more information.
0 votes Thank Flag Link Mon May 18, 2009
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