A friend of mine who is a Real Estate agent emailed me this today....

[trumad]

"was having a pretty good trend starting for me in real estate I had
two closings in one month (of course the last one was 8 months ago!)
and I wrote another contract and have two other buyers. I was in pig
heaven until my first one got cancelled Friday because of title defect
problems. From there most of any of the properties I was to show the
other buyers were foreclosures....which have now been or will shortly
be withdrawn from the market because all foreclosures appear to be
having title defects. Check out below what I am talking about. Are
we in more trouble or what? WOW".

[LiberalFighter]

1. Real estate agents need to charge a handling fee when a foreclosure

involves a defect preventing a closing. The bank or holder of the foreclosure should be required to pay.

[FarCenter]

4. I thought that the realtor got their fee for getting the buyer and seller to contract.

Doesn't the realtor sue the seller for his fee? The realtor has done her job.

[Waiting For Everyman]

6. Nope, they get paid AFTER settlement, after the checks clear.

Fallthroughs are the big hurdle in real estate. Lots and lots of contracts fall through at settlement, for a million-and-one reasons.

Getting a contract signed is usually months away from payday.

[Pathwalker]

7. Realtors don't get paid until the closing. No closing, no pay.

n/t

[LiberalFighter]

13. I'm referring to the real estate agent representing the bank or whoever

that contracts with the real estate agent to sell the property. The bank is wasting the agent's time they hired.

[FarCenter]

14. So was I

I once was in contract with a seller who failed to close because he had a stroke, was partly paralyzed, and became unemployed.

The real estate agent eventually settled for part of the commission from the seller.

Meanwhile, my lawyer cautioned against agreeing with the seller to not close and void the contract, or the real estate agent could sue me for his commission. I had to continue to appear ready and willing to close for a few months while the seller negotiated his way out with the real estate agent. Eventually, there were releases all around, although I don't know how much the seller had to pay.

Needless to say, I used a different agent to buy a different house.

[geckosfeet]

2. Any links or additonal info in his email? This problem is nasty.

Even if you pay off your mortgage the bank can't give you a clear title. That means you can't sell.

I have asked this before - why isn't this kind of title search becoming a cottage industry within the property law community? Help folks get titles on homes where banks have broken real estate laws.

[trumad]

8. Here is one...

http://4closurefraud.org/2010/09/19/naked-capitalism-latest-real-estate-time-bomb-title-of-foreclosed-properties-clouded-wells-fargo-dumping-risk-on-hapless-buyers/

[Greyhound]

3. Until this Wall Street government legalizes fraud this will just get worse.

That's why standing up for what's right is so important, once you protect or justify crimes, it never ends.

Game, set, and match.

[dixiegrrrrl]

9. Alabama apparenlty legalized the fraud in March this year.

Which means, I guess, the bank will legally be able to give me a forged title to my house if I ever pay it off.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x84303

[Greyhound]

11. Yup. The problem now is that they have to pass a law at the federal level

making it mandatory for every state to accept any other state's requirement or lack thereof.

They already tried to slip it through earlier this year, they got caught that time and it was stopped, but they will put it back into every bill if they have to.

[Greyhound]

12. Yup. The problem now is that they have to pass a law at the federal level

making it mandatory for every state to accept any other state's requirement or lack thereof.

They already tried to slip it through earlier this year, they got caught that time and it was stopped, but they will put it back into every bill if they have to.

Persistent DU bug.

[csziggy]

5. My niece is buying a foreclosed condo in Washington DC

She is paying a title company separate from the one required by the bank for her contract to check the title. That means at least two title companies should be examining the documentation for her condo. I hope that is sufficient for her to get a clear title - she's putting a lot of money into the place, but it will save her a bunch on rent and transportation.

[Uben]

10. I bought six houses yesterday!

I love Monopoly!

[TreasonousBastard]

15. Before everyone jumps up and down about the big bad banks...

it would be nice to know just why there are title problems.

Tax, and other, liens causing title defects in 80% of Iowa flood claims cases come to mind.

[eleny]

16. Sounds like people who own their homes free and clear might have an easier time selling

Their homes could be more attractive because the titles wouldn't have "defects" and if there are no liens.

[davsand]

17. You'd think that would be the case, but foreclosures sell lower, usually.

Banks don't want to be landlords--they only make money when there is a payment coming from a loan. As a result, banks will sell a foreclosure at "fire sale" prices just to get out from under ownership of the property. Joe Average who is selling his house because he and the wife want to retire to another state closer to the grandkids simply doesn't compete price-wise. IF Joe Average has a realtor that can talk sense to him (and the Mrs.) they'll list that house at a slightly lower value and get it sold, however that is a lot more rare than you might think.

I was looking at an article the other day that was discussing the huge number of adjustable rate mortgages that are due to reset in the next 18 months, which is gonna cause another wave of foreclosures (most likely.) A lot of banks are sitting on vacant houses right now because they have not wanted to flood an already struggling market with even more inventory. Once the rest of those mortgages re-set we are gonna see a bunch more of those foreclosure houses on the market, which is gonna depress prices even more.

We are headed into a time in real estate when prices are gonna come down even further, and the title work is gonna continue to be shaky. That oughtta scare hell out of anybody who's paying attention.



Laura

[eleny]

18. Doesn't matter how cheap the deal is if the title can't clear