David Rouse writes:
We have a Condo that we might have to put on the market soon. We are
current and not underwater on the loan(barely). Back on 06 we refinaced
from a ARM to a 30 year fixed and in the process removed a lien from a
bankruptcy. The originator was WaMu who of course is no more. I don’t
know it for a fact, but it is likely that the loan was sold into a
security. Given the mess with conveying the notes properly from buyer to
buyer and title insurers starting to balk, should I be concerned about a
clouded title reducing the possible sale price of our unit?
You should consult with your broker or agent on this issue. They should
be able to obtain a preliminary title report on your property to
ascertain if the lien which the bankruptcy court stripped off still
shows as an encumbrance on your title. If it does, you should consider
providing your agent with a copy of the order stripping the lien, so
they can present it to the title company to see if they are willing to
take it off as an exception to the report. If it is still an issue, you
may want to see if your bankruptcy attorney can help. He may need to
record the order.
Duane W. Shewaga
Real Estate Fraud Unit
Telephone: (408) 808-3787
Office of the District Attorney
County of Santa Clara
Answer #2 :
f the lien was removed through the Bankruptcy, it is unlikely to still be on the title, however Bankruptcy doesn’t necessarily protect against judgments and liens.
The best thing to do would be to visit the county recorder’s office and pull a copy of the title on the home. The title report will list all the liens against the home. A title company can do this as well, but I am not sure if they charge and how much.
If the there is a lien on the home, it is not going to reduce the sales price of their unit, but may make them underwater. It also depends on the type of lien and what position it is on the title.
Hope this helps
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