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Old 01-21-2011, 10:14 PM
 
Location: Censorshipville...
2,439 posts, read 3,618,133 times
Reputation: 1196
Quote:
Originally Posted by jlyp View Post
So I've been having issues with this home purchase...I figure instead of flooding the forums with a new thread, I'll just bump my initial thread.

Heres the issue.

According to my realtor, the selling bank lost or cannot find the title/deed to this home. The home is a supposed foreclosure. My realtor says that the bank is working on getting the deed so we can proceed to closing; she informs me that the process can take anywhere from 2-weeks to a few months.

I've done my part as promised and kept up with my end of the deal in terms of getting the necessary paperwork in on time and complying with the wishes of the bank but now this "BS" happens and I can't shake the feeling that the selling bank is giving me the runaround. If they were really trying to sell this property would they not have all the necessary paperwork ready, in hand, ready to transfer?

My closing date has been pushed back from Jan 31 to sometime in February or the beginning of March.

My question(s) are:

1. Does it REALLY take that long to generate a title/deed if one was in fact lost?
2. Am I wrong for thinking the seller and my realtor are giving me the run around?
3. Should I give it a chance and wait just a tad longer, with the hopes that they're not in fact giving me the runaround or should I just pull out of the sale all together?
I had a similar issue when I bought a foreclosure in April of 2009. There was an issue with the title and it did take a month or so to figure things out. It eventually worked out and I purchased the property.

I too thought they were giving me the runaround, but it did end up just being a bureaucratic issue. The seller (bank) does want to get rid of the property since they don't want to own the property and have to pay taxes etc.

I did buy the owners title insurance just in case there may future issues with the title. The lender forces you to buy a lender title insurance to protect the lender. The owner's title insurance is optional and designed to protect you.
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Old 01-22-2011, 06:51 AM
 
Location: Sterling, VA
1,043 posts, read 1,784,746 times
Reputation: 557
It's not that they can't find the deed, it is that the transfer of title was not handled well. So many times the original mortgage is sold to another lender and now mortgages (or deeds of trust) are bundled and sold to investors more than once and the records are not clear as to who actually owns the mortgage.

Oneasterisk gave you good advice, buy owner's title insurance to protect yourself. The title insurance the lender requires you to buy protects only the lender's interest.

I remember a case in Centreville or Chantilly about 20 years ago where a couple was transferred to Europe for several years, rented their house, and the tenant falsified a deed transferring the property to the tenant, and the deed was recorded. He then sold the property, the counterfeiting was not discovered by the title company before the sale. This fraud was not discovered until the owners returned to the USA. To make a long story short, the new owners had not purchased owner's title insurance and had to sue the title company for their loss. They did win their suit but it would have been less aggravation and heartache if they had purchased insurance to protect their interest. It is a one-time fee and well worth it, in my opinion.

Last edited by Margery; 01-22-2011 at 07:03 AM..
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Old 01-22-2011, 08:28 AM
 
Location: Alexandria, VA
13 posts, read 12,152 times
Reputation: 10
Quote:
Originally Posted by oneasterisk View Post
I had a similar issue when I bought a foreclosure in April of 2009. There was an issue with the title and it did take a month or so to figure things out. It eventually worked out and I purchased the property.

I too thought they were giving me the runaround, but it did end up just being a bureaucratic issue. The seller (bank) does want to get rid of the property since they don't want to own the property and have to pay taxes etc.

I did buy the owners title insurance just in case there may future issues with the title. The lender forces you to buy a lender title insurance to protect the lender. The owner's title insurance is optional and designed to protect you.
Thanks for the info; I do want to wait out the process but my apartment lease is running up pretty soon and I don't feel like paying an extra $450+ to go month to month.

I guess I'll wait it out a week before I start harrassing the hell out of my realtor and selling bank.
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Old 02-10-2011, 08:29 AM
 
Location: Alexandria, VA
13 posts, read 12,152 times
Reputation: 10
Default Home Warranties

I'm looking to be educated on Home Warranties and how it'll work for me.

I haven't purchased one yet but my realtor said she added one on. I still have the time to take it off if it doesn't work in my favor. The townhome home itself is being sold "as is" (foreclosure). When I got the home inspection done, the inspector noted a few issues within the house in regards to some weak water issues in the upstairs sinks and a leak in the middle level half-bath; all fixable as a DIY project.

His main concern was the hot water heater and its heating element. Its going to need to be replaced, either whole unit or heating element. My realtor stated that the home warranty would cover everything in the home upon move in as well as everything with noted issues (ie. hot water heater). I've asked her to send me the warranty info so I can see and verify what she's saying in writing.

Regardless, I'm just lookign to be educated on Home Warranties. If anyone could help out, it'd be awesome.
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Old 02-10-2011, 08:38 AM
 
Location: Virginia
4,066 posts, read 4,852,097 times
Reputation: 2511
This will likely get moved as it doesn't involve NOVA from what I can see. That said. I'm not familiar with the plans but I would think they are a waste of money. Here is a web site with a bunch of responses from people regarding this same subject. The majority seem to feel the plan is a waste.

Are home warranties worth it? - home warranty homeowner | Ask MetaFilter





Quote:
Originally Posted by jlyp View Post
I'm looking to be educated on Home Warranties and how it'll work for me.

I haven't purchased one yet but my realtor said she added one on. I still have the time to take it off if it doesn't work in my favor. The townhome home itself is being sold "as is" (foreclosure). When I got the home inspection done, the inspector noted a few issues within the house in regards to some weak water issues in the upstairs sinks and a leak in the middle level half-bath; all fixable as a DIY project.

His main concern was the hot water heater and its heating element. Its going to need to be replaced, either whole unit or heating element. My realtor stated that the home warranty would cover everything in the home upon move in as well as everything with noted issues (ie. hot water heater). I've asked her to send me the warranty info so I can see and verify what she's saying in writing.

Regardless, I'm just lookign to be educated on Home Warranties. If anyone could help out, it'd be awesome.
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Old 02-10-2011, 09:29 AM
 
Location: Censorshipville...
2,439 posts, read 3,618,133 times
Reputation: 1196
It all really depends. I've heard some people have had repairs paid by their home warranty and only being out of pocket the $50 deductible. The repair would have cost more than the warranty and deductible so it saved them money.

I personally wouldn't do it, as I think it's like insurance. It's a waste of money, until you need it. I had one thrown in by the seller when I bought my house in 2003. I renewed in 2004 for about 300 and both years I never used it. I thought it was throwing good money out the door so I have not renewed since. Instead I put extra money into my "house account" every month in preparation for a big repair bill. I've been doing this since 2003, and there is already 10k in my house account. If my water heater goes bad, it goes out of the house account and I don't dip into savings. I don't have to worry about paying a deductible or worrying if a repair is "under warranty". Just call a contractor and get it fixed.
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Old 02-10-2011, 10:08 AM
 
Location: Northern Virginia
1,628 posts, read 1,423,780 times
Reputation: 1765
Quote:
Originally Posted by jlyp View Post
I'm looking to be educated on Home Warranties and how it'll work for me.

I haven't purchased one yet but my realtor said she added one on. I still have the time to take it off if it doesn't work in my favor. The townhome home itself is being sold "as is" (foreclosure). When I got the home inspection done, the inspector noted a few issues within the house in regards to some weak water issues in the upstairs sinks and a leak in the middle level half-bath; all fixable as a DIY project.

His main concern was the hot water heater and its heating element. Its going to need to be replaced, either whole unit or heating element. My realtor stated that the home warranty would cover everything in the home upon move in as well as everything with noted issues (ie. hot water heater). I've asked her to send me the warranty info so I can see and verify what she's saying in writing.

Regardless, I'm just lookign to be educated on Home Warranties. If anyone could help out, it'd be awesome.
We purchased our home warranty through HMS. I think it was $350 or $400 for the year. It is a type of insurance and I figured, my health is insured, my car is insured, the structure is insured, so my heating/electrical/plumbing/appliances might as well be insured as well. I spent $275k so what's another $400?

Thankfully, I have not had to use it yet. But you could take a look at HMS's website to get some information.

I have a friend who purchased a condo and shortly after purchasing it, her heating unit failed and needed to be replaced. She saved $8k by using her home warranty.
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Old 02-10-2011, 01:31 PM
 
Location: Alexandria, VA
13 posts, read 12,152 times
Reputation: 10
The company that the realtor told me about is HSA. I googled their company and so far their reviews look HORRIBLE! Yikes!

Since the home is a foreclosure and probably hasn't been lived in for about a year, I'm thinking that home warranty is a good idea but at the same time, I never really put faith into warranties for the fact that whatever breaks will probably be excluded from their warranty.

I guess my thing is, is it worth the purchase for this first year?
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Old 02-10-2011, 02:20 PM
 
Location: Censorshipville...
2,439 posts, read 3,618,133 times
Reputation: 1196
A new water heater is less than $600-800 installed. You can get them for cheaper/more for sure so shop around. So if you pocket the 350-400 for the Home warranty, then you'd only have to come up with another 400 to pay for a new water heater.

How's the furnace/heat pump/ac unit? That would be pretty expensive to replace. If those are old and you don't have the money to replace, maybe it's a good idea to purchase a home warranty until you can build up a sizable "house fund".

IMO your money would be better spent starting a "house fund". Every month put in $50-100 and pretty soon you'll have a sizable amount. In almost 8yrs of owning my first home I've accumulated 10k in my house fund. I'll be updating both bathrooms this year and I'll dip into the house fund. When I refinanced this past December, I took the money from the house fund for the closing costs and I didn't have to use any of my own personal savings.

Since it's a foreclosure, any chance the bank will pay for the home warranty? I bought a foreclosure in 2009 and the bank gave me back almost 5k in closing costs. Why can't they purchase a 300-400 home warranty for you?
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Old 02-10-2011, 02:43 PM
 
Location: Alexandria, VA
13 posts, read 12,152 times
Reputation: 10
Quote:
Originally Posted by oneasterisk View Post
A new water heater is less than $600-800 installed. You can get them for cheaper/more for sure so shop around. So if you pocket the 350-400 for the Home warranty, then you'd only have to come up with another 400 to pay for a new water heater.

How's the furnace/heat pump/ac unit? That would be pretty expensive to replace. If those are old and you don't have the money to replace, maybe it's a good idea to purchase a home warranty until you can build up a sizable "house fund".

IMO your money would be better spent starting a "house fund". Every month put in $50-100 and pretty soon you'll have a sizable amount. In almost 8yrs of owning my first home I've accumulated 10k in my house fund. I'll be updating both bathrooms this year and I'll dip into the house fund. When I refinanced this past December, I took the money from the house fund for the closing costs and I didn't have to use any of my own personal savings.

Since it's a foreclosure, any chance the bank will pay for the home warranty? I bought a foreclosure in 2009 and the bank gave me back almost 5k in closing costs. Why can't they purchase a 300-400 home warranty for you?
HVAC unit is good; inspector said its about 5 years or less. I don't recall asking him about the AC compressor itself but when he tested it, it seemed to be in good working condition.

The bank will not pay for the home warranty. We've asked multiple times during the offering but the bank will not budge on it. I had the agent ask them again but they denied our request and said that because the house has been appraised for $10k more than what we're paying for it.
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