11 "Faux Pas" That Are Actually Okay To Make With Your Condos

[Lance Matsuda]

Selling Your Home What Can Go Wrong With Title and Lenders

If you're selling your home it is likely that there will have some issues in the process. There are certain issues that can't be fixed. It is important to determine whether yours are fixable or not. After that, you can make them better or leave and find a new buyer. If it's priced correctly and you have a buyer there for almost every property.

Title Problems

You get a call from someone searching the title for your property and they inform you that your family's first cousin removed is listed as having a 10% stake in the property. I'm sure you (and not just the lender) possess title insurance.

If you don't, perhaps your cousin would agree to sign a quitclaim deed (or the equivalent term that the jurisdiction you reside in) to prove that her father given a payment for his interest a long time in the past, but nothing was recorded in the land documents. If that doesn't work maybe your cousin would agree to join in the sale and get 10% of the proceeds.

If not, you're likely facing a court proceedings. The sale will end up falling apart, and youll have to begin again after the issue of legal ownership has been determined. Bummer. Before you put your property on the market, you need to make sure that the title is clear.

Lender Objections

They can cause a lot of problems when selling a home. Lets look at a few examples.

Example One

The lender calls you and says the garden shed you have is encroaching on your neighbors ' property, while their fence is on your property. The lender wont fund the buyer's loan until all of the stuff is relocated where it is. Typically, the lender isn't likely to reverse. What are your options?

If you're in a good relationship with your neighbor and complete the task yourself (or you can afford to pay for it done) then the issue will be resolved quickly. I've witnessed a innovative solution to this issue. The shed was in Click here for info a utility right-of-way. The seller requested the county to write a letter to the lender which stated that if the building was not on a poured foundation (it was not) and was able to be moved on notice, it was not considered to be an intrusion until a notice was sent.

Example Two

The lender states that your property will appraise for the amount needed for the loan so that the necessary repairs are completed. The list of repairs irritates you. Take a deep breath and consider. How can you ensure that they are taken care of prior to settlement? Do you have the capability to take them care of? Have you done them? Do you think the buyer would be willing to lend a hand? Does this offer have the potential to take off? No matter what the answer is you must take a rational decision, without emotion.

Example Three

The appraiser from the lender comes back with an appraisal below your agreed sales price. The lender is prepared to provide a loan based upon the appraisal, not the agreed price.

There are many options for solving this problem.

1. You are able to reduce the price to the appraisal price.

2. If the purchaser is interested in your property in a sufficient amount and has the money, he can pay more in a down payment and keep the purchase price the same.

3. You and your partner can divide the difference. You pay a portion, and the other one increases his down payments some.

4. Or, sadly, the agreement could fall apart due to this matter.

The real key to successfully solving problems is to remain relaxed, open-minded and flexible. You must also be bottom line oriented, and consider win/win. A majority of issues that occur do have solutions. All we have to do is look for them persistently.