If you are selling a short sale in Destin Florida, it’s wise to have a title search as soon as you list.
Why? Problem prevention! Title problems can delay short sale closings. You don’t want to find out these issues after you finally get approval, and only have 30 days to close!
Here are some examples of what early title searches have revealed on some of my Destin Florida short sales:
1. Seller is not aware of a mortgage. That means we may have never submitted a short sale package to this lender.
2. Seller lists wrong mortgage companies on letter of authorization. Again, this causes nothing but delays.
3. There is a judgment that must be paid before closing. Judgments can be a huge problem. In Florida, a judgment in the county where the property is located normally has to be paid or otherwise removed before there is a sale. The judgment could be from a credit card company, a mortgage company, or any other creditor. The amounts can be substantial.
4. There is an IRS tax lien that must be resolved. Allow extra time to remove it.
5. Local tax liens. These must be paid or moved prior to closing.
6. There is another title holder. If undisclosed early, time is lost locating the missing party, and ensuring he is cooperative in the sale.
7. The seller should have received a quit-claim deed from an ex-spouse per divorce decree. Find out if the ex-spouse is cooperative at the beginning of the process.
8. Etc. Etc.
These are just examples of issues that would be revealed by an early title search. They seem to be more prevalent with short sales than with traditional sales. It’s best to get your title search done as soon as you list. Solve these problems ahead of time, and move on to a speedier closing.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 local 850-650-7883 ext 204
Email Wendy: [email protected]