Are you frickin' serious... - PeachParts Mercedes-Benz Forum

ramonajim · #1 02-23-2009, 10:43 AM

... or just high?

Selling bank sends an addendum on The Cottage for Ma and Ed. Includes this charming little bit of stupidity:

Quote:

The undersigned agree to the amounts set forth on the HUD-1 Settlement Statement for all figures, including but not limited to, taxes, sewer, assessment, water, or other lienable charges based on an estimate or actual taxes or charges from the previous year on the above referenced property. Further, the undersigned hereby agree that said figures are final and any difference will not be adjusted by the Seller after closing.

Uhm - no f'n way. You, Mr. Selling Bank, have been sitting on this property for the past 16 months. County records show - yep, you have paid exactly zero dollars towards property taxes. And for all I know, whoever it was that you repo'd this house from owes the IRS a gajillion dollars (one of those pesky "lienable charges"), there are 3 dozen mechanic's liens sitting in the wings waiting to post, and your mother wears combat boots.

No f'n way.

That is all. Thank you for providing this opportunity to vent.

F'n $hitforbrains selling bank. Grr.

Mistress · #2 02-23-2009, 10:49 AM

What the heck?

Dee8go · #3 02-23-2009, 10:52 AM

Isn't this what a title search is supposed to turn up?

ramonajim · #4 02-23-2009, 11:26 AM

Quote:

Originally Posted by Dee8go

Isn't this what a title search is supposed to turn up?

Yep - but what this addendum is saying is that I agree to pay whatever the title search dregs up.

Ah - nope. Not gonna happen.

Mistress · #5 02-23-2009, 11:33 AM

I trust you can find another bank rather quick.

Dee8go · #6 02-23-2009, 11:33 AM

Yeah, that leaves you on the hook for all kinds of stuff.

Dee8go · #7 02-23-2009, 11:36 AM

I take it this was a foreclosure that you are buying? I've heard that you have to be careful about buying those for this, as well as other, reasons. Good luck with this. I hope this doesn't throw a monkey wrench into your plans.

ramonajim · #8 02-23-2009, 11:56 AM

Quote:

Originally Posted by Mistress

I trust you can find another bank rather quick.

The bank in question is the owner (yep, this is a foreclosure), so we're stuck dealing with them. This is the sort of thing having a GOOD settlement company makes all the difference in the world on. Fortunately, we have one of them on tap (actual attorneys, not para-legals and form pushers).

This gem I caught without even having to contact the settlement attorney. Will run it by him for grins and giggles, but ain't no way this is getting signed - even if it means passing on The Cottage for Ma and Ed.

There are plenty of other places for sale, this one just happens to be the cheapest workable property around

Jim B. · #9 02-23-2009, 12:29 PM

Quote:

Originally Posted by Dee8go

Isn't this what a title search is supposed to turn up?

Well yes, but only if someone RECORDED it at the County recorder's office.

Unrecorded liens.....well good luck trying collect on them by selling the house to pay then off.

Brian Carlton · #10 02-23-2009, 12:38 PM

Quote:

Originally Posted by Jim B.

Unrecorded liens.....well good luck trying collect on them by selling the house to pay then off.

What's the deal on title insurance with an unrecorded lien? If the lien is presented after closing...........does the title company have any responsibility?

Dee8go · #11 02-23-2009, 12:38 PM

Quote:

Originally Posted by Jim B.

Well yes, but only if someone RECORDED it at the County recorder's office.

Unrecorded liens.....well good luck trying collect on them by selling the house to pay then off.

Isn't that what title insurance is supposed to cover you, the buyer, for?

ramonajim · #12 02-23-2009, 12:50 PM

Yeah, just got off the phone with the title attorney. He says document is effectively meaningless, but some banks throw it in for all sales - not just foreclosures.

Title search on the property is already done (and clear - no liens), and any liens that post after closing are covered by the title insurance (assuming we pay for title insurance, which of course we will).

Mull, mull, mull.

450slcguy · #13 02-23-2009, 01:01 PM

If the house was owned by the bank for 16 months, isn't the bank responsible to pay the property taxes? I would think if the bank defaults on the property taxes, the town could seize the property.

In my area, if I'm over due on property taxes buy even one quarter, they almost immediatly start the process for sheriff sale.

Jim B. · #14 02-23-2009, 01:03 PM

Quote:

Originally Posted by Brian Carlton

What's the deal on title insurance with an unrecorded lien? If the lien is presented after closing...........does the title company have any responsibility?

No; I was in that business for about 14 years in California.

The title insurance policies ONLY insures agains errors and omissions for RECORDED liens, easements, mortgages and things like that.

The title companies have (in addition to their escrow department) a title department, which is a daily, updated exact duplication of the county records, searchable MUCH faster because they are organized that way.

Usually at the last second, just before closing, and the new deed records, a title company runner at the Courthouse, does a name run, and a title update, to make sure no NEW liens are recorded in the last second before the deal closes and the new deeds get recorded. Tha is very important, to catch last minute things like that.

This one is funny. Once in San Francisco I rode up to our office on Montgomery Street in the same elevators with 2 lawyers for our title company, and the title company lawyers were talking in there.

Lawyer #1: We have a problem. We did title searches on this new subdivision with a common area, and one of our people accidentally deedout out the ENTIRE greenbelt to the first grantee, and now she says she OWNS it.

(yah, I would have said so too. How much you wanna buy it back for? heeeee)

Lawyer #2: We will have to institute a quiet title lawsuit.

Jim B. · #15 02-23-2009, 01:14 PM

Quote:

Originally Posted by 450slcguy

If the house was owned by the bank for 16 months, isn't the bank responsible to pay the property taxes? I would think if the bank defaults on the property taxes, the town could seize the property.

In my area, if I'm over due on property taxes buy even one quarter, they almost immediatly start the process for sheriff sale.

For the town to seize property for back taxes, with all the notices, chances to redeem back taxes, and notices for the auction, it takes usually 2-5 YEARS to get something like that to happen.

I did see it happen in San Francisco a few times though. But you should have seen the land. Tiny wierd little parcels of property, totally unhabitable, shaped like tetrahedrons and triangles, utterly useless for anything at all whatsoever, the were just a curiousity.

But yes the process exists, it is in place. There are small companies that put out weekly "notices of default" and sheriffs auction, for people to subscribe to.