Oh my...! Mortgage, judgements and other liens.

Thursday, September 15, 2016

Contribution by Jacqueline Hernandez.

Liens that appear on the commitment were disclosed by the search of the public records.  When we start asking questions as to the old liens that may show, the party to the transaction may feel like Dorothy in the Wizard of Oz, trying to find their way for a resolution to their matter.  We have some steps that we can take to assist with clearing the title.

If the lien is from a prior owner and a title policy was purchased, we may be able to obtain a Letter of
Indemnification from the Underwriter as to the outstanding matter.

If the lien is against the current owner of the property, often it is an old lien that has been paid.  A Satisfaction will need to be filed, and any information available as to it being paid in full would be helpful with tracking down a Satisfaction. We often find that the lien may have been assigned to different mortgage companies numerous times, there were mergers, or the lienholder may no longer exist.  We have numerous resources available to locate the parties that need to file the satisfaction.  If we are unable to do so, there are companies that specialize in that field that would charge a fee for title curative services. 

Each title is unique, and depending on the applicable laws of the state in which the property is located, there are circumstances where certain judgments appearing may be removed (i.e. due to how title is vested and marital status).

In many cases where there is a common name involved and we have determined the defendant is not the party involved in our transaction, we may remove judgments by having the seller sign an affidavit.

If the liens shown on the commitment, or there are others discovered after obtaining certifications, have amounts due and owing, the amount needed to satisfy the lien can be collected at closing.  Payment would be remitted to the appropriate party and satisfied after settlement.

It is extremely important to review the commitment upon receipt, as tracking down satisfactions is a time consuming process, and if old matters are not addressed until a day or two before the closing, it could cause delays, and/or the need for a substantial sum of money to be held in escrow until the outstanding matter can be cured.

If you have any questions, please feel free to contact us.  Global Title Alliance LLC.

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