Okay, so the 5,248 is not an EXACT number. And unfortunately, I am sure in reality its probably a much higher number. I am writing to share a rare occurrence in my real estate journey....I recently helped a relocating buyer/family purchase a home here in Hampton Roads. The home was a bank repossession. What this meant for my buyer was that the home would be sold on an "as-is" basis, meaning take it or leave it for the buyer because of the lower than market value price. The buyer was in this case allowed to have a home inspection and there were no "deal-breaking" issues so everything proceeded as normal. Getting closer to the date of settlement, we received a call from the title company stating there was a problem with the deed. Apparently, when this home was repossessed, it was bought by Lender A. No issues there. WELL....unfortunately when the sale was complete for Lender A, the deed was written up to read that the seller was...oops...Lender B! So what we had was an error (big one) that prevented my buyers from closing until Lender B signed that they were never the owner and had no interest in the property. The problem was that if it didnt get resolved, the buyer didnt have a valid contract with the rightful owner, Lender A, because according to the deed, they never owned the property.
How in the world does a lender who has attorneys review every morsel of paperwork, miss something as huge as their NAME on the deed? Even though this doesnt seem like an earth shattering big deal (have Lender B sign an affadavit stating that Lender A is the true and rightful owner) the issue was that the attorneys needed to review every nook and cranny (since now they were in the hot seat) to ensure there were no other mistakes. Getting a lender who is already back logged with short sales and foreclosures to drop everything (right before Christmas) to consult their attorneys to review and make sure they are "held harmless" as to any claims or issues with the property and state they were never the owners, took weeks.
Everything turned out fine in the end, but my assumption here is that with the many foreclosures and short sales going on and the rate at which they are happening leaves lots of room for human error. My lesson learned is to remember to educate the buyers with as much information and disclosure as possible. I had already forewarned them that purchasing a bank repossession and/or short sale could take months to get closed. This was the first time in 10 years and hundreds of transactions that I have seen this particular situation. We cant prevent every bump in the road from occurring, but we sure can do our best to educate which in turn will help navigate through the rough spots.
Not every deal is perfect and not all transactions require miracles. Need help in real estate? Call me, I'm atthehelmofit.com
