Selling Your Home What Can Go Wrong With Title And Lenders

Selling Your Home What Can Go Wrong With Title And Lenders



Selling Your Home – What Can Go Wrong With Title and Lenders
If you’re selling your home,​ there are going to​ be difficulties at​ some point in​ the​ transaction .​
Some problems can’t be fixed .​
It’s important to​ figure out whether yours are fixable or​ not .​
Then you​ can either fix them or​ move on​ and find another buyer .​
If it’s priced appropriately,​ there’s a​ buyer out there for virtually every property.
Title Problems
You get a​ call from the​ person searching the​ title to​ your property saying your first cousin once removed is​ shown as​ having a​ ten percent interest in​ the​ property .​
I​ hope you​ (and not just your lender) have title insurance.
If you​ don’t,​ perhaps your cousin will sign a​ quit claim deed (or whatever similar term your jurisdiction uses) if​ her father was paid for his interest long ago,​ but nothing was recorded to​ that effect with the​ land records .​
If that doesn’t work,​ perhaps your cousin will agree to​ join in​ the​ sale and receive ten percent of​ the​ proceeds.
Failing that,​ you’re probably looking at​ a​ court proceeding .​
The sale will fall apart,​ and you’ll have to​ start all over again once the​ problem of​ legal ownership has been resolved .​
Bummer .​
Before you​ put a​ property on​ the​ market,​ make sure your title is​ clear.
Lender Objections
Lenders can really punch holes in​ a​ home sale .​
Let’s look at​ a​ few examples.
Example One
The lender calls and says your garden shed is​ encroaching on​ your neighbor’s property,​ while their fence is​ on​ yours .​
The lender won’t fund the​ buyer’s loan until everything is​ moved to​ where it​ belongs .​
Typically,​ the​ lender isn’t going to​ back down .​
What are your options?
If you​ get along with your neighbor and can do the​ work yourself (or can afford to​ have it​ done),​ the​ problem can be quickly cured .​
I​ once saw a​ very creative resolution to​ this problem .​
The shed was on​ a​ utility right-of-way .​
The seller got the​ county to​ write a​ letter to​ the​ lender saying that if​ a​ shed weren’t on​ a​ poured foundation (it wasn’t) and could be moved on​ notice,​ then it​ wasn’t considered an​ encroachment until/unless such a​ notice was sent.
Example Two
The lender says your property will appraise for the​ amount needed for the​ loan so long as​ the​ following repairs are made .​
The list of​ repairs upsets you​ .​
Time to​ take a​ deep breath and think .​
How can you​ get them taken care of​ before settlement? Can you​ do them? Have them done? Would the​ buyer be willing to​ help out? is​ this a​ deal to​ walk away from? Regardless of​ the​ answer,​ the​ key is​ to​ make a​ logical decision not an​ emotional one.
Example Three
The lender’s appraiser comes in​ with an​ appraisal that is​ below your agreed sales price .​
The lender is​ willing to​ lend based on​ the​ appraisal,​ not the​ previously agreed price.
There are several options for fixing this problem.
1 .​
You can reduce your price to​ the​ appraisal price.
2 .​
If the​ buyer wants your property enough and has enough money,​ he can pay a​ larger down payment and leave the​ purchase price the​ same.
3 .​
The two of​ you​ can split the​ difference; you​ come down some,​ and he increases his down payment some.
4 .​
Or,​ sadly,​ the​ deal can fall apart over this issue.
The real key to​ successfully dealing with problems is​ to​ stay calm,​ open minded,​ flexible,​ bottom line oriented,​ and think win/win .​
Most of​ the​ problems that occur do have solutions .​
We just need to​ look for them persistently.




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