I just sold a home in Carmel, IN that had been scooped up by a Trust Co.
I found, as always, that full disclosure is of utmost importance. Just as important is the Lender you use.
My clients came to me after working with another Realtor for a year. They were dissatisfied with the
poor service they had received from the other Realtor. They came to me with a Mtg Broker already
in place. Within a month I had located a home for my Buyers that they loved and we made an offer.
I am well known in my market and have a very good reputation and as always I asked the listing Realtor
for the conditions that would assure an acceptance for my Buyers. I was not told about the Trust, but
only that the home would not go FHA. I informed my Buyers and their Lender and we submitted a
conventional offer. The Lender, however, ignored our instructions and the terms of the purchase
agreement and made a mess of the closing. I worked the phone for countless hours to push our
closing through to avoid a Sheriff's Sale. Afterwards, the listing Realtor told me that he will be
more careful in the future to discover and make known all of the interests involved. I believe we
will see many more of these properties on the market.
When you get the Title work and see one name on the deed and another on the Title, make all your
calls immediately to discover exactly who owns the property and what is needed to convey. Title
companies will improve their performance with experience. In this way your clients will know what
the hold ups are and your Lender will be less apt to try to push through an FHA loan when it is not
possible. In our case, the Trust closed on their loan the day before we closed on ours and neither
the Title Co., the Mtg Broker nor the other agent gave me that info until 2 days later!....and they left me
sitting with my clients for several hours on the day we were supposed to close, telling us that it could
still happen that day. - That was incorrect because the Trust was only just closing that day.
I hope this helps.