Posted by John Merchant on July 05, 2008 at 08:59:07:
If an item is recorded, then everybody* is on notice
And a Title Policy is a T co’s gathering up all recorded docs and then issuing it’s corporate guarantee and insurance policy stating who is currently on title, what liens exist, etc.
For market certainty, the T Co’s written guarantee (the T policy) is the authoritative word at that time so it’s universally accepted by buyers and lenders and their lawyers, etc.
Now if you or I have some add’l personal knowledge about a title, unless somebody could prove (usually impossible)we had add’l knowledge, the law as to T holder and actual ownership is going to go as that T policy states.
Laws are different in diffent states about effectiveness of unrecorded deed.
Without briefing it I’d say that generally that latest deed grantee who hasn’t recorded his/its deed is taking a huge chance and will probably be the ultimate loser.
I once deeded an unwanted city lot I realized I didn’t need to a buyer who then, for his own reasons (I always figured he didn’t want his creditors to know about it until he was ready) just did not and would not record…so I kept getting tax bills for it, kept reminding him to record but I never knew of its getting recorded.
He trusted me enough to figure I wouldn’t then sell it to somebody else who would record it and try to cut him out but this was his taking a chance that I wouldn’t die and leave my estate with this deal that they’d know nothing about, and my executor would then figure I owned it and had just forgotten about it.
*In French and Spanish, “everybody” is tout le monde and todo el mundo…literally meaning “all the world”.
My god mother had her home forclosed on in 2005 by Countrywide Home loans. The property was given to an attorney to try to sell but it didn’t sell. The attorney’s office said they sent property back to countrywide. I spoke to countrywide Forclosure/REO property dept and they said that they don’t have the property but Fannie Mae should have it because they were the original investor in the loan. I spoke to Fannie Mae and they are saying they don’t have it. This property has been sitting for almost 3 years and it’s still showing up in the courthouse in my god mothers name. She is a single mom on govt assistance and couldn’t handle the taxes the city has still been charging her. She’s had to continue to pay the taxes even though she doesn’t live in the home. There has not been any updates at the courthouse about a forclosure, thus she is still showing responsible. The city was going to take the property because it’s been sitting and boarded up and property unkept but charging my god mother to do it. We just recently did a quit claim deed to get the pressure off of her and allow me to handle the property and taxes she’s been paying for the past 3 years. Question: Is there any way to legally sell this property under abandonment or something? Neither Countrywide nor Fannie Mae are claiming the properies and a Full Title search was done and not showing any other possible purchasers. The property is assessed for $57k the way it is. I have someone who wants to buy for $40k. How can I get this done? Someone please help!
What is the remaining mortgage balance? What state are you in? Was the home foreclosed–get the attorney’s office to confirm what they did. How much have you/Godmother paid taxes, upkeep etc.? What’s the price range homes are selling for in this area? Provide more information and we can sort this out.
If she can deliver clear title… - Posted by John Merchant
Posted by John Merchant on July 01, 2008 at 06:50:05:
She can give a deed today if she can simultaneously deliver T policy showing it’s in her name.
If the T Co. will give her a clear T policy then the T co. would stand behind and defend any deed she gives.
Heck, with that, even though a buyer might suspect she’d had it foreclosed upon, if the T shows it’s in her name and F&C, that B could safely buy it sans worry.
Oh, I just noticed she’d given you QCD so if that’s been recorded, you’d be the one to sign the new deed to new buyer…but if TC says its yours, same deal and B can take without worry.