Why You need A Title Search Prior to Listing A Home As A Short Sale

As short sales have become more predominant in the housing market in Charlotte, NC.; there are steps that you as a consumer can take to ensure that the transaction moves smoothly. One such thing is to have a title search done on your property prior to putting it on the market. or at the very least make sure the Listing agent insists on having one done on the house prior to selling the house. A title search is by definition just that. An attorney will perform a search of the title of the house (or deeds of trust) and ensure that first the home was conveyed properly through the channels on prior sales up to 30 years. In addition they check to see who has a secured interest on that property right now. Most homeowners are aware of their mortgage being a secured interest on the property. In addition if you have a second mortgage or a home equity line of credit; that will be attached as a secured interest on the home. What homeowners are unaware of is that unsecured debtors can place a lien on a house. Some of the most common ones are HOA (Homeowners Associations). If a family is doing a short sale because they cannot afford the house anymore; there is a good chance that they are not going to pay the HOA dues. To protect their interest they will file a lien against the property for back dues. Another one is a judgment against you as a person. In North Carolina a civil judgment against you as a person would have to be satisfied in order for clear title to a house to be conveyed. Most civil judgments are credit cards. it is uncommon for credit cards to do this but it does happen. And when it does and no one knows about ti until the closing attorney does a title search it can cause a whole transaction to blow up. Having a title search done upfront also helps eliminate any questions and helps the attorney prepare the closing statement letting everyone know how the money is going to be divided...A bank/lender may agree to a certain dollar amount and then find out there is another lien on the house that has to be satisfied. Now, they are getting less and you have to renegotiate the whole transaction all over again. A title search is invaluable for any short sale and not doing one upfront can be disastrous to a transaction. Dave diCecco Realtor/Broker www.davedicecco.com