Posted by gt on September 03, 2007 at 06:22:52:
Do I get a RE lawyer to represent me or does my title co. cover me?
what is my next step ?? - Posted by gt
Posted by gt on September 01, 2007 at 07:40:15:
Suppose to close on a home in Virgina next week. My title co. found a judgement against the home that was not discovered in the previous closing 2 yrs ago. Home was a HUD purchase then. Only info I am getting is from current owner who is also a real estate agent. This is her family home. She said that she had title insurance, but the judgement is for more than the loan amount, but it should be covered by her title co. because it is an error and ommission. No one is giving me concrete answers. Should I get an attorney ?
Close if &when title clear - Posted by blucat
Posted by blucat on September 01, 2007 at 11:17:28:
Wait to close after the T co. has received and recorded the necessary docs releasing the Judgment.
If it becomes clear to you that the Seller lied to you or really just forgot that J (right! ;), and it’s still oustanding, then maybe it would present you a great opp and you could get the J holder to do a short sale of the J to you.
Call the lawyer who took the J and explore what kind of payoff you could get on the J.
Since a good 95% of ALL recorded/abstracted J’s are NEVER paid, I’ll guarantee you’ll get some interest from the lawyer when you call and you might just get a property dirt cheap.
And to get your earnest money back if the J can’t be cleared and you really don’t want to proceed, have your lawyer send a Rescission Notice to Seller and the Title Co and demand your money back now on grounds Seller hasn’t delivered as promised and agreed.*
If the S or Agent give you any trouble on this, I’d first call the RE Broker in that Agent’s office, then if that didn’t work, call the State RE Licensing agency in your state and report this possible fraud on the part of the Agent and her Broker.
If what the Agent/Seller is telling you is true, that the J was on record but her T co. missed it, SHE might have a lawsuit against that T Co. but it shouldn’t involve you as that’s her problem, not yours.
*problems like this have caused me to never give any cash on an EM on any offer. I use a promissory note that’ll be paid WHEN title is clear and on file with the title co. AND when all other contingencies are satisfied. Not before.