IT'S NOT FUNNY, BUT....
12/04/2009 15:33In a recent conversation with the "seller's" title agent on a file we are handling on behalf of a very smart buyer (they opted to use their own title agent, not the seller's) I had occasion to shake my head and really just laugh because this borders on the ridiculous. The call went like this:
SELLER'S TITLE AGENT (STA): "Do you have everything you need from me for your closing on this property, which is scheduled for later this week?"
ME: Well, is the sale ratified?
STA: I think so, just a moment let me look. (rifling of papers). Yes, I have a fully executed contract so, yeah, the sale is ratified.
ME: No, I was referring to the foreclosure sale. Has that ratified with the court yet?
STA: "Ummm...I don't know, hold on, let me look. (more rifling of paper). "Hm.. I really don't know, let me ask the Asset Manager"
At this juncture it is painfully clear that the seller's title agent has not even pretended to have gotten a title report on the property, but instead is just reliant upon the foreclosure attorney to "spoon feed" contracts to the title agent, who, by the way, is owned by the foreclosure attorney firm. At no point does the seller's "title agent" refer to the court docket entries, nor do they refer to the Trustee's Deed from Trustee to the seller.
It is so very important in a REO transaction that you do not let the seller try to force you into using their "title agent". More often than not these days the "title agent" is nothing more than a foreclosure attorney owned/managed firm who is being tasked simply with the coorination of closing on REO properties. They do not run their own independent title reports, they do not question any of the filings in the foreclosure file,in short, their sole purposed is to conduct the closing, charging the buyer, by the way, for full title services. It cannot be stressed enough that these foreclosure attorney firms are working for the seller. They are providing only insurable title, not marketable title.
The seller will try to convince you that it is "cheaper" for you to use the services of the seller's title agent, but as a point in fact, the seller's title agent is going to charge far more for far less service than an independant title agent, specializing in REO resale will charge. Even if the seller is paying your settlement fees you lose because the fees that the title agent charge will eat into your other allowable fees, thus causing you pay more out of pocket.
Call on The Preferred Title Group, Inc. for your Maryland REO closings. Experience a better way to get your REO transactions to closing.
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