cory301 Posted December 2, 2004 Report Share Posted December 2, 2004 We are in the process of owner financing a home. The attorney doing the contract insisted on a title search. I have a judgement from ford motor credit from 1993 that has been renewed in public records in 2000. It has not showed up in my married name, but will they do a search in my maiden name? What is the reason for the title search on our name anyway? I thought that it was to protect us if the seller has any judgements. If something does show, can we put everything in my dh's name? (we live in Fl.). If this is an owner finance house why would my judgement matter? Thanks for any help-sorry so long. Link to comment Share on other sites More sharing options...
amortgageman Posted December 3, 2004 Report Share Posted December 3, 2004 The hard part of the question is whether or not the judgment will show up on the title search. There is never a clear answer on these things. When I encounter a situation where there may be a judgment, I will usually get the title search done before having the client lay out any money for an appraisal. There just is no clear answer whether it will be there or not.Now, regarding the seller attorney requesting a search.... He/she is doing so to protect his clients interests. If they were to execute a committment for the property and have title to the property in your name, and the judgment pops up as a lien on the property, and then you default on your obligation, the seller then has to go through an exhorbitant amount of work to get the lien released (if they are lucky enough to do so). Only other way out would for them to pay off the lien. I hope this explains why the attorney wants his client protected. Link to comment Share on other sites More sharing options...
Recovering Attorney Posted December 6, 2004 Report Share Posted December 6, 2004 I'm not sure about Florida, but I know here in NYS, your judgment would attach to the property and, perhaps, be ahead of the seller's mortgage. So if he had to foreclose, he would have to pay off your judgment, too, just to get his property back. Why would anyone take that risk?What the lawyer did is what every lender does. And you should do it, too. What if the seller is eager to give you a mortgage because he has liens he doesn't want to or can't pay. If you aren't represented, his lawyer isn't going to volunteer that. Do you know if the taxes have been paid every year from the lase decade? Are there any other mortgages on the property? The convenience of owner financing does not remove your own due diligence. Link to comment Share on other sites More sharing options...
coolbreeze Posted December 9, 2004 Report Share Posted December 9, 2004 I'm not sure about Florida, but I know here in NYS, your judgment would attach to the property and, perhaps, be ahead of the seller's mortgage. So if he had to foreclose, he would have to pay off your judgment, too, just to get his property back. Why would anyone take that risk?What the lawyer did is what every lender does. And you should do it, too. What if the seller is eager to give you a mortgage because he has liens he doesn't want to or can't pay. If you aren't represented, his lawyer isn't going to volunteer that. Do you know if the taxes have been paid every year from the lase decade? Are there any other mortgages on the property? The convenience of owner financing does not remove your own due diligence.Can you explain what due diligence is, please. I have never been totally clear about it. Link to comment Share on other sites More sharing options...
braxas Posted December 9, 2004 Report Share Posted December 9, 2004 Basically Due Diligence is doing homework !The lender checks into YOUR background to make sure you can afford a mortgageThe lender checking the appraised value of a home you want to buy to see if the property is actually worth the money your asking them to lend youThe title company checking to see that the title is free of liensAnt, termite, lead inspectionsAnything that can bite you in the ARSE at a closing be it buyer or seller deals with Due Diligence, all parties involved, especially the lender, making sure all the t`s are crossed, before they lend you the $$$Hope that clears it up for you Link to comment Share on other sites More sharing options...
Recovering Attorney Posted December 9, 2004 Report Share Posted December 9, 2004 call a title insurance company and tell them you are buying a property and you need a title binder for a fee/owner's policy. You will need the deed the owner took title in. TH ebinder should tell you if there is anything in the title that may affect your ownership rights. Link to comment Share on other sites More sharing options...
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