All Forum Posts by: Peter Walther

Make sure you check the commitment before you close, when you get the policy it’s too late to do anything, you've already bought any problem there is.

Vikram is right, check the legal, not the address but the legal and make sure it’s the property you expected, all the property. You would be surprised how many times mistakes are made. The requirements aren’t too important to the buyer; they're generally things the seller has to do to perform though if you’re getting a loan that will be there.

The exceptions will list out the restrictions and easements that affect the property and you want to read them and understand them. You don't want to find out after the fact that you can't use the property the way you wanted to or there’s a gas pipeline easement running through the backyard you didn't know about.

Make sure there isn't going to be an exception for mechanics liens in the policy, especially if the property has just been rehabbed, you don't want to get to pay the subs who did the work.

Get a survey or at least make sure there won't be a survey exception in the policy. I can't tell you the number of times I've had claims where the house the insured is living in actually sits on a different piece of property.

Steve,

Thanks for the advice. I'll keep it in mind.

Sorry Steve I didn't mean to post something you had already put up. I saw a question, had an answer and thought I would try to help. Next time I'll search and make sure you hadn't already posted the information somewhere else.

Nationwidepi, while it was my post it wasn't my bulletin, it was Attorney's Title Insurance Fund. The Fund use to be have the largest title insurance market share in Florida until they recently stop writing new policies because of the losses they've suffered. A good portion of those losses were due to fraud. They are out of the business of writiing new policies and all they do now is work old claims and manage some agents for Old Republic Title.

I've never heard anyone say there is anything wrong, much less illegal about a flip with full disclosure it just that its hard to see a lender willing to take a loss on a sale knowing the buyer on the short sale has another buyer all ready lined up willing to pay more for the property. Maybe you're that good a salesperson, I don't know.

Florida tax certificates are sold at a dutch auction with the bidding on the interest rate starting at 18%. The winner of the auction is the biddr who will accept the lowest interest rate. After holding the certificate for two years the certificate holder can ask for the property to be sold at auction but all outstanding taxes have to be paid first.

Though property tax sales happen infrequently, you need to be sure the property is worth the tax amount because you might wind up owning it.

This is your problem. It started in in Florida .

FUND ALERT: SHORT SALE PROGRAMS

The Fund has become aware of several "short sale programs" advertised on the internet and elsewhere that promise to make the investor lots of money with little or no work by purchasing and selling property through short sales. The programs involve the investor entering into options or similar contracts with the homeowners for the exclusive right to purchase their property for a period of time. The investor negotiates a short sale with the lender, convincing the lender that the price they are offering is the market value of the property. The investor then finds a buyer for the property at a much higher price. Once the buyer is lined up, the investor buys the property from the seller, pays off the seller's mortgage at the short sale rate, and simultaneously sells the property to the buyer at the higher price, pocketing the difference. In most cases the original lender is not told that the buyer is flipping the property on the same day for thousands more than the lender has been told is the market value of the property.

In the cases we have seen, the investor has not put any of his own money into the transaction, and uses the new lender's money to fund the entire deal.

A variation of this program involves the investor having the seller convey the property into a "trust" with the investor as "trustee".

The Fund has made a business decision not to insure these types of transactions.

Before you insure any kind of transaction involving a short payoff to the existing lender, or a simultaneous closing, make sure that the following requirements have been met:

•1. There are no violations of any restrictions listed in the short sale payoff letter or closing instructions.

•2. There have been no misrepresentations as to the value or ownership of the property to the existing lender, the new lender, or the purchaser.

•3. All disbursements must be made exactly as stated on the HUD-1 settlement statement, and only to parties involved in this specific transaction.

•4. Each half of the simultaneous closing must be kept separate and stand on its own. The sale from A to B must be fully funded and disbursed with money coming from and going to all appropriate parties. The sale from B to C must also stand on its own. The money from C's lender must not be used to fund any portion of the A to B transaction.

If the circumstances of your transaction do not meet the above requirements, you must contact a Fund underwriting attorney for approval prior to insuring the transaction.

Thanks for the welcome Will.

By the way, you can't really search title through the assessor's web site, that's not what its for. You can only really search the title through the Clerk of the Court or the Recorder of Deeds office. Whoever is charged with keeping the official records in the state and county you're in.

Scott,

What your asking about is "notice" and there's two kinds. Actual and constructive. If the deed is of record then the world has constructive notice of it whether you know about it or not. If the deed is not of record but you know about because someone told you about it you have actual notice. Depending on the state you're in it may or may not impact your ability to take title free and clear of its effect.

Running title by yourself is a tricky thing to do even when you know what you're doing.

Helllo everyone, I'm Peter from Virginia. Just found this web site and am looking around. I've been in title insurrance for 20 years and am tired of seeing others making money and thought I'd see if I could do it to. I've got lots to learn but think it should be interesting.