Tag Archives: California Title Company

Common Title Obstacles

The following items require added clearance and processing time for escrow and title. Avoid delays by providing as much information as you can as soon as possible.

  • Bankruptcies
  • Probates
  • Foreclosures
  • Establishing Fact of Death – Joint Tenancy
  • Use of, Proper Execution of Power of Attorney
  • Family Trust
  • Business Trust
  • Recent Construction
  • Physical Inspection Findings – Encroachments, Off-Record Easements
  • Clearing Liens, Judgments
  • Clearing Child/Spousal Support Liens
  • Proper Execution of Documents
  • Proper Jurats, Notary Seals
  • Transfers/Loans Involving Corporations/Partnerships
  • Last Minute Changes in Buyers
  • Last Minute Changes in Coverage

Usually judgments against a common last name can create huge title problems when not supplied a State of Information. If this is not received until the last minute, it creates a problem in resolving any possible liens that might need to be addressed prior to closing. So we would like to see all State of Information come in the early part of escrow.

This article and information was by California Title Company, and Cam Hunter. You can find them online at www.CalTitle.com.

Is title insurance needed for a newly built home?

I’m buying a newly built home, do I need title insurance?

California Title Company | Cam HunterWith the construction of a new home, special title problems for the lender and owner could occur. You are not the first owner of the property. There were probably many prior owners of the unimproved land. You don’t want problems or liabilities from previous owners to interfere with your rights to your property.

A home is the larges single asset most people will acquire during their lifetime, and a mortgage is often the single largest debt obligation many will ever incur. With such a huge investment at stake, it makes sense to obtain title insurance that will insure against outstanding liens and encumbrances. For example, the builder may not have paid a subcontractor or supplier. This could result in the supplier placing a lien on your property. Your lender will want to make sure that the title to the property they are financing is clear, and that their mortgage is in the proper priority.

By purchasing title insurance, you will be protected against covered claims for as long as you own the property.

This article is from Cam Hunter at California Title Company. 

Understanding Foreclosure

Understanding Foreclosure

It is an unfortunate commentary, but when economic activity declines and housing activity decreases, more real property enters the foreclosure process. High interest rates and creative financing arrangements also are contributing factors.

When prices are rapidly accelerating during a real estate “bonanza”, many people go to any lengths available to get into the market through investments in vacation homes, rental housing and “trading up” to more expensive properties. In some cases, this results in the taking on of high interest rate payments and second, third and even fourth deeds of trust. Many buyers anticipate that interest rates will drop and home prices will continue to escalate. Neither may occur, and borrowers may be faced with large “balloon” payments becoming due. When payments cannot be met, the foreclosure process looms on the horizon.

understanding foreclosuresIn the foreclosure process, one thing should be kept in mind: as a general rule, a lender would rather receive payments than receive a home due to a foreclosure. Lenders are not in the business of selling real estate and will often try to accommodate property owners who are having payment problems. The best plan is to contact the lender before payment problems arise. If monthly payments are too hefty, it may be that a lender will be able to make some alternative payment arrangements until the owner’s financial situation improves.

Let’s say, however, that a property owner has missed payments and has not made any alternate arrangements with the lender. In this case, the lender may decide to begin the foreclosure process. Under such circumstances, the lender, whether a bank, savings and loan or private party, will request that the trustee, often a title company, file a notice of default with the county recorder’s office. A copy of the notice is mailed to the property owner.

If the default is due to a balloon payment not being made when due, the lender can require full payment on the entire outstanding loan as the only way to cure the default. If the default is not cured, the lender may direct the trustee to sell the property at a public sale.

In cases of a public sale, a notice of sale must be published in a local newspaper and posted in a public place, usually the courthouse, for three consecutive weeks. Once the notice of sale has been recorded, the property owner has until 5 days prior to the published sale date to bring the loan current. If the owner cures the default by making up the payments, the deed of trust will be reinstated and regular monthly payments will continue as before. After this time, it may still be possible for the property owner to work out a postponement on the sale with the lender. However, if no postponement is reached, the property goes “on the block”. At the sale, buyers must pay the amount of their bid in cash, cashier’s check or other instrument acceptable to the trustee. A lender may “credit bid” up to the amount of the obligation being foreclosed upon.

With the recent attention given to foreclosure, there also has been corresponding interest in buying foreclosed properties. However, caveat emptor: buyer beware. Foreclosed properties are very likely to b e burdened with overdue taxes, liens and clouded titles. A buyer should do his homework and ask a local title company for information concerning these outstanding liens and encumbrances. Title insurance may or may not be available following a foreclosure sale and various exceptions may be included in any title insurance policy issued to a buyer of a foreclosed property.

This article is by California Title Company and Cam Hunter.

More questions? Need help with your property being foreclosed on?  Please, call me and let me help!

John A. Silva, Realtor

(619) 890-3648 | www.JohnASilva.com