VA Reposession deed question (contract, Realtor, closing, sales) - City-Data Forum

scapegoatpa · 08-07-2011, 03:28 PM

I have a friend who bought a VA reposession home approx 9 years ago. She bought it from a realtor who specializes in selling VA repos. She bought the house at a good price and has since decided to sell it. The problem is that when she bought the house, she says she did not attend an official "closing" that everything was handled by the realtor. She has a mortgage through a bank, has been paying taxes and everything is fine except she has NO DEED in her name. The taxes show "Dept of the Army" as the owner and a deed search performed at the courthouse shows the owner of record at the courthouse is "Dept of the Army" also. The title company told he they never saw such a thing and she should contact a real estate attorney, but she has no extra money to do so.

She contacted the realtor who sold her the home and they told her to contact the VA. After many attempts to contact the VA she finally talked to someone at the VA who told her "don't worry...you don't need a deed to sell it" and everything would be ok.

Is this normal on a VA repo? I am concerned for her because it seems like she is paying for a home that is not really hers. What should she do to get a deed in her name? Has anyone had a similar problem? Thanks for any advice.

2bindenver · 08-07-2011, 03:36 PM

You do not need the title to sell in a real estate transaction like you would need if you sold say, a car.

I am sure that a title or an escrow company was involved, and that a copy of her deed is in her closing documents.

Silverfall · 08-07-2011, 07:37 PM

It might be that the new deed wasn't recorded with the county. I agree with 2b. She needs to look through her documents that she received and see if she has a copy of the deed. If she does, she can go and record it at the county.

Brandon Hoffman · 08-08-2011, 04:05 PM

Where is the original title company and what are they doing about it? They should have taken care so have your friend get them to correct it.

palmcoasting · 08-09-2011, 06:05 AM

Quote:

you don't need a deed to sell it

Really? Since when? As Brandon said, the original title company should be handling this or if in your state an attorney handled it, they should be as they obviously didn't follow through and record the deed. At this point, if she did try to sell there would be issue with the title chain. Either one of those should still have a file on the deal and should have a copy of the deed.

2bindenver · 08-09-2011, 12:27 PM

You need to be in title to sell but you do not need the physical title to sell.

palmcoasting · 08-11-2011, 08:20 AM

If the deed has not been recorded and you don't have a copy of it, how would they know that the property was transferred at some point and you are now the person allowed to sell the property? At this point, from what the op is saying, it looks like the VA could just...resell it. There's nothing recorded to prevent that from happening. Of course it could be disputed via a lawsuit, but I'm just trying to figure out how proof of ownership is there if nothing has been recorded.

Captain Bill · 08-15-2011, 07:07 AM

Did the owner check with the County Registrar to see if the deed was recorded?

Who handled the closing, an attorney or title company? The owner should go to the closing person and find out what happened.

DMenscha · 08-18-2011, 10:08 AM

If a home in CA is sold to a vet in the CalVet program, the transaction is on a land sales contract in which the lender (In this case the Calvet program) holds title and reconveys the title to the owner when the mortgage is paid off or the property is sold.

Perhaps the OP's situation is similar.