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Updated about 9 years ago on . Most recent reply
HUBZU-Title Issues
We are in the process of closing on an investment property that was offered on the Hubzu website. After much frustration with their bidding process we finally went under contract with an all cash offer. We chose a local title company that we trusted to do the closing. A couple days before close we received notice that the property was being denied title insurance due to a break in the chain of title between Deutsche Bank and Ocwen. Alitsource (Ocwen's representative) has tried repeatedly to provide something to satisfy the requirement, but has been unable to produce the required document. They then requested we change title companies and use their title company. However, they are also unable to provide a title commitment. I am sure the document exists somewhere, but everyone we speak with is from India and I don't think they understand what we are looking for. Our original close date was 2 1/2 weeks ago and we do not seem any closer to closing than when we started. Altisource has now contacted our agent to see if they have any ideas to get this closed, but aside from closing without title insurance (which we do not want to do) I can't think of any. Has anyone else had this trouble with Hubzu?
Most Popular Reply
It's not a Hubzu problem, it's a bank and lender problem. Is the break in the title chain deed related or mortgage related? If it's deed related a new deed can be drawn up and executed by signing parties at Ocwen and DB. If it's mortgage related, there may be an assignment of the loan missing. It may be missing forever because it may have never been executed.
If it were me and I had a full understanding of the title, I'd offer to purchase the property with the title flaw and forego title insurance.... for a serious discount. That kind of title flaw can be fixed with a quiet title action. QTAs cost money and take time, so it has to make sense for your purposes and the discount would have to be significant. If you're not experienced with title issues, don't try this at home. :)