Bank crisis another one on the horizon.
Title insurance might not be issued on some of these newly purchased homes. Buyers lenders are looking to see if a 60 year search done before allowing the closing for many of these homes to clear title.
Where is the breakdown?
When the trustee takes the home at the courthouse steps they don’t always finish the process. Here are a few steps that should happen after the foreclosure.
Certificate of foreclosure will be issued with the results of the sale and notarized . Then the foreclosure deed is typed out. The new deed for the house goes back to the bank or the investor who bought it at auction. If the attorney did not prepare all the proper documents and recorded properly the new deed might be rejected and not recorded. This makes the process slow down and the new deed does not get recorded. In the interim the home may get listed and sold but at closing the new title company finds the deed was not done properly. The big issues may arise when the bank did not get the deed and certificate done quick enough more liens and debt might be against the home. If the buyer files bankruptcy but the deed never was recorded the original seller is still listed as the owner ?
Protect your client get a title search as soon as you identify a property. A title search can be done on any home it is public information and the cost minimal, this is the best way to protect your client. What happens if the courthouse burns down how do you prove who is the owner, it is by receipt of the recorded deed !
9k homes may still come on the market here in Hampton roads !
Are the smaller banks liquidating their inventory. We think they are in quiet pools sales to investors.