Who Actually Does The Title Work/Search ?

[exxo2]

My Loan Officer, as some of you know, says they are just waiting on the "title work" from the title company. And boy are they taking their time. But that's another story.

 

Anyway, first, what is "title work" from the title company ? Is this what you all are referring to as the "title search" ?

 

Also, does the title company do the search on the seller and the property, and then the lender does the search on the buyer ? It would seem logical but I'm not sure if maybe the title company does it all.

 

Please break this down for me if anyone knows "for sure". I searched but it seems like most people are not sure. I hate this title search step just because everyone says it could be a deal breaker and make all your months of work come to an end fast.

 

I appreciate it.

[DallasLoanGuy]

the title company researches your title for 'defects'.... usually liens... but it could be other things.

 

anyway, the title company warrants your title free of 'defects'. so, to YOU.... it is an insurance policy that their are no liens on the property.

 

ex: un-scrupulous builder doesnt pay a contractor on a job he did on your house (yesterday or 20 years ago... no matter) that contractor puts a lien on your house.... and comes knocking on your door to collect. you simply direct them to your title company and THEY PAY!!

 

clear as mud? hah, sorry, i was in a hurry

[joshbgosh]

I know you're nervous, but please relax, you're starting to make me nervous

 

Title work comes from the title company, don't worry it will get there you still have 4 more days. It's good you're staying on top of it, but please don't have a heart attack before closing or all of this will be for nothing.

 

Don't worry, be happy!

[exxo2]

Well, what I was trying to get an answer to was.....who does the search on the buyer ?

 

Everybody here says they search the buyer too. Who does that ? The lender or the title company.

 

I just didn't understand why the title company would be concerned with searching the buyer BUT i can see why the lender MAY want to. And if a search IS done on the buyer, WHEN is that done ?

 

Anyone kow the answer ?

 

Again, does the title company search the buyer ? When I search about title search/work on the web, it makes no mention of the buyer as part of the title search, it only mentions THE PROPERTY and THE SELLER.

Edited February 3, 2005 by exxo2

[exxo2]

bumping for more help and opinions

[choiceworthy]

The only 'search' on the buyer is through the credit report and loan documentation. Underwriting has already searched you!

 

The title is on the property only, and it can be a problem getting the work done in time. They pull all records of the property for the last 100 years, I believe, and analyze each transaction for any errors as well as look for properly discharged liens, etc. For instance, if somebody inherited the property thirty years ago, the title company is making sure the proper documents were recorded and there is no unknown heir that can step up and claim ownership of part of the property.

Edited February 3, 2005 by choiceworthy

[DallasLoanGuy]

they will do a social security number search on you.

 

happened to me today. a borrower didnt have any aliases on her credit report, but when the lender did a ss# search... they found 2 names that werent her... strange.

[exxo2]

The only 'search' on the buyer is through the credit report and loan documentation. Underwriting has already searched you!

 

The title is on the property only, and it can be a problem getting the work done in time. They pull all records of the property for the last 100 years, I believe, and analyze each transaction for any errors as well as look for properly discharged liens, etc. For instance, if somebody inherited the property thirty years ago, the title company is making sure the proper documents were recorded and there is no unknown heir that can step up and claim ownership of part of the property.

<{POST_SNAPBACK}>

 

Oh, okay, so you're saying Underwriting is who would search the buyer ? Please understand why I am confused. It's because if you do a search on this forum, you will see almost everyone saying that the TITLE SEARCH also does a search on the buyer. I mean, I must admit, I didn't understand why the title company would concern themselves with the buyer, BUT i could understand them searching the property and seller.

 

Then why do people on here say "The title search will do a search on the property, seller and BUYER" ?

 

Just bad information ?

[choiceworthy]

Then why do people on here say "The title search will do a search on the property, seller and BUYER" ?

 

Just bad information ?

In the case of title issues there are times the title company will need to do a little digging on the seller. This is to insure the seller is the full and rightful owner of the property and will be triggered by something found on the title.

 

For example, if the seller were awarded the house in a divorce and it was not recorded properly the title company might want a copy of the divorce decree. This might be construed as doing a search on the seller, but it is done to properly record the title for the new owner to insure no future questions.

 

The only concern the title company should have with the buyer is to determine that the buyer is who they say they are although the Patriot Act has put the title company and the lender both in a position to be more aware of anything that does not look quite right, and that might sometimes involve more than a cursory glance at the photo ID.

Edited February 4, 2005 by choiceworthy

[renquin]

I also heard that they do a title search on the buyer for things like judgements, liens and collections in the public records, is this true or do they just use your credit report, make no sense to me either why they would do a title search on the buyer.

[tootie357]

in my area they do judgement searches on buyers. at settlements i have seen people having to come up with child support, back taxes, etc.

[renquin]

Where are you from?? How about have you heard that on a title search on the buyer they also show up collections, which is strange because you would think collections would show up on credit report?

[tootie357]

collections are different monsters. that may be the lender stipulating the collections to be paid. i am in maryland.

[Chitwoodc]

in my area they do judgement searches on buyers. at settlements i have seen people having to come up with child support, back taxes, etc.

<{POST_SNAPBACK}>

Was the judgement a lien against the property that title found during the title search and therefore the lender required it to be paid before closing, by the SELLER? I have never heard of such a thing. Only if their is a lien against the property, which means no clear title, would the SELLER be responsible. If someone already owned their property and a lien showed up during the title search then they would need to pay it off. But a buyer shouldnt be responsible when its a purchase.

[exxo2]

in my area they do judgement searches on buyers. at settlements i have seen people having to come up with child support, back taxes, etc.

<{POST_SNAPBACK}>

Was the judgement a lien against the property that title found during the title search and therefore the lender required it to be paid before closing, by the SELLER? I have never heard of such a thing. Only if their is a lien against the property, which means no clear title, would the SELLER be responsible. If someone already owned their property and a lien showed up during the title search then they would need to pay it off. But a buyer shouldnt be responsible when its a purchase.

<{POST_SNAPBACK}>

 

What I meant when I started the post was....let's say a buyer had an unpaid judgment or lien from say 5 or 6 years ago. That buyer has never owned a house before. That judgment or lien has never been on their credit reports.

 

But, when that buyer goes to buy a house, does the title company or Underwriter look for stuff like those unpaid judgments or liens on that buyer and then right before closing tell the buyer "Whoa....we know you are supposed to close in 2 days but...we can't do it now, we found an old unpaid judgment or lien on you and that poses a threat to the title, so NO DEAL ?

[tootie357]

what i have seen a couple of times is a buyer had back support owed to ocse and also had a judgement for another matter and was told to pay that at settlement. the issue came up doing the judgement search that the title company did and the buyer was aware that they were supposed to bring extra money to settlement. they could not back out of the contract because they owed money to the county. also another instance was someone owed taxes to the state and they had to bring extra money to settlement. when i bought my first house i had to pay my library fines.

[exxo2]

what i have seen a couple of times is a buyer had back support owed to ocse and also had a judgement for another matter and was told to pay that at settlement. the issue came up doing the judgement search that the title company did and the buyer was aware that they were supposed to bring extra money to settlement. they could not back out of the contract because they owed money to the county. also another instance was someone owed taxes to the state and they had to bring extra money to settlement.  when i bought my first house i had to pay my library fines.

<{POST_SNAPBACK}>

 

WHAT?! Now see....Library fines?! This is getting ridiculous now.

 

But, I hold my ground on being confused as to why the title company would be doing judgment searches on the BUYER. You all sure ? choiceworthy.....i thought you just said earlier that Underwriting would be the one searching on the BUYER. Right ?

[Chitwoodc]

I have never experienced a title company finding out about a mysterious judgment that wasnt already on the buyers credit report. Only if its on the report, will the lender see it and require it be paid..maybe. But title has nothing to do with it.

[choiceworthy]

The eagle eye of underwriting usually catches just about everything. A judgement may not show up as a public record but show up elsewhere. If underwriting sees a garnishment on the paycheck, for instance, you can bet your bottom dollar they will not let the loan go anywhere until they have full and accurate accounting of everything there is to know about that garnishment.

 

I have seen the closing department, in making the closing instructions for the attorneys, uncover issues that the underwriters missed which caused last minute payoffs to be exposed after underwriting. I have also seen, when the attorneys were trying to figure out the payoff instructions and compare them to the credit report, the attorneys (paralegals, actually) pick up on something that was missed by both underwriting and closing but needed to be taken care of. These circumstances are rare (and usually involve refinances) but when they come up they need to be dealt with.

 

I have never heard of the title company doing a judgement search on either the buyer or the seller. There are companies that make a business out of monitoring court reports and reporting judgements to the CRAs. To ask the attorneys to go beyond what is already been reported would be to ask them to actually do a full scale investigation involving multiple court houses, newspapers, etc. This would take months and be exhorbitantly expensive.

[tootie357]

that's just in my county. they are a different animal. they want their money.

[exxo2]

Interesting.

[fla-tan]

Well, what I was trying to get an answer to was.....who does the search on the buyer ?

 

Everybody here says they search the buyer too. Who does that? The title company will do a search of public records for all parties to the deed. If only one spouse is on the mortgage, but both are on the deed, the lender will only decide whether or not the borrowing spouse is worthy of financing. However, the other spouse can have public records that could cause a problem down the road. For examply, a tax lien or a judgement could cloud the title and give the lienholder or taxing authority a claim against the property. The lender or the title company.

 

I just didn't understand why the title company would be concerned with searching the buyer BUT i can see why the lender MAY want to. And if a search IS done on the buyer, WHEN is that done ?

 

Anyone kow the answer ?

 

Again, does the title company search the buyer ? When I search about title search/work on the web, it makes no mention of the buyer as part of the title search, it only mentions THE PROPERTY and THE SELLER.

<{POST_SNAPBACK}>

 

 

fla-tan

[fla-tan]

I also heard that they do a title search on the buyer for things like judgements, liens and collections in the public records, is this true or do they just use your credit report, make no sense to me either why they would do a title search on the buyer.

<{POST_SNAPBACK}>

 

requin

 

Title companies do not look into collections as they are not public records. Title companies only look at public records to make sure that there can be nothing that is currently clouding the title, in the case of the seller or previous sellers. Or that there is nothing that currently can cloud the title in the future, in the case of buyers.

 

 

fla-tan

[brwynn]

I also heard that they do a title search on the buyer for things like judgements, liens and collections in the public records, is this true or do they just use your credit report, make no sense to me either why they would do a title search on the buyer.

<{POST_SNAPBACK}>

 

 

If you have ever visited the credit forum, you would see that there are many ways of getting a judgement removed from your credit report - this does not mean the judgement doesn't exist though. The title company does a search for public records on the buyer because credit reports may not be accurate and judgements could pose a problem in the future.

Edited February 4, 2005 by brwynn