The REO Transaction Process Explained

REO (Real Estate Owned) properties make up a significant portion of the inventory in the Puget Sound real estate market. As a reality of the current real estate industry REO transactions draw plenty of confusion and frustration for many who are involved. Here at Ticor we’ve been handling a steady volume of REO properties and deal with some large REO accounts. Based on our experience with REO transactions we’ve produced the following outline.

Please understand the REO process described below represents an “average” experience and just like any real estate transaction many factors can affect time frames and conditions.  For more details, click the following link for hot tips on working with escrow on an REO closing.

The Beginning – Mutual Acceptance

The beginning is signified by mutual acceptance of the Purchase and Sales Agreement

Day 1 Escrow is opened and Title is OrderedEarnest Money is deposited
Day 2-3 Deed is prepared and sent to SellerBuyer’s vesting info is taken from the purchase contract, if incorrect the Seller will request proper vesting and an addendum will be required

Buyer’s Lender requests fees from Escrow

Escrow orders HOA, Lien Demands and other money matters associated with the property

Day 4-5 Seller will begin requesting weekly status updates from Escrow regarding specifics like the appraisal, inspections, earnest money deposits, underwriting criteria for buyer’s lender, etc.

The Middle – Underwriting (10-20 Business Days)

For the next 2-4 weeks the Buyer’s Lender will work on underwriting the loan for the transaction and await approval to move forward.

The End – Closing Process (3-7 Business Days)

Day 1 Buyer’s Lender delivers loan documents to EscrowEscrow completes an estimated HUD and sends to Buyer’s Lender for approval
Day 2-3 Buyer’s Lender approves estimated HUD and notifies EscrowUpon Lender HUD Approval, Seller’s HUD is sent for signature

Schedule Buyer to sign loan documentation

Day 3-6 Signed Buyer’s documents are received back at EscrowFunding Package is assembled and sent to Buyer’s Lender for final funding approval pending Seller Signed HUD

Seller Signed HUD is received by Escrow and forwarded to Buyer’s Lender to accompany the Funding Package

 

If the Buyer’s Lender is satisfied with the funding package and conditions the transaction will fund, the Deed will subsequently be recorded and the transaction will close.

 

Questions or thoughts?  Please leave a comment below!

How do I remove someone from the title to my property?

How do i remove someone from property title

How Do I Remove Someone From Title?

Situations can arise where the ownership interest in your property changes from the way it was originally acquired. Whether it is due to death, divorce, a parting of ways or the requirements of a new lender it sometimes becomes necessary to remove someone’s name from the title to a property. This is usually accomplished by the party exiting title executing a deed of conveyance in favor of the party or parties that will remain in title. Clearing the interest of deceased parties is an entirely different matter altogether and will not be addressed here.

In Case of Divorce

In cases of divorce, the best way to clearly show which party was awarded the property would be for the party not awarded it to execute a quit claim deed in favor of the party that it was awarded to. Many times the terms of the decree of dissolution and/or settlement agreement in the divorce case don’t properly identify real estate holdings and it can be difficult to determine “who got what”.

Tenants-In-Common

If title is held by two or more parties as tenants–in-common and one of them decides to sell or otherwise relinquish their interest they would execute a deed of conveyance (typically a statutory warranty deed or in some cases a quit claim deed) to the recipient(s) of their interest.

When a Party in Title Doesn’t Qualify For a Loan

Sometimes a party in title does not qualify for a loan and if the lender agrees to make the loan to the other title holder(s) a deed of conveyance (typically a quit claim deed) will be executed by the non-borrower to the borrowing party in title to the property.

Seek Legal Council

You should always consult with an attorney before signing any legal documents. You should also consult with Excise Tax Dept. personnel at the local county recorder’s office to help you determine if excise (i.e. conveyance or transfer) tax will be due when the deed is presented for recording.

Adding the twitter widget to wordpress

Add Twitter Widget to WordPressLike many companies, we use twitter to listen to tweeple in our industry (real estate professionals on Twitter) and use wordpress as our blogging platform. So naturally it would make sense that at some point the two platforms will co-mingle online. For example when we write a blog post on “what is an easement“, we’ll generally send out a tweet with a link letting our twitter friends know about the new post. And conversely, we want the visitors who visit our blog first to know that we are on twitter as well.

Letting our blog readers know that we’re on twitter can happen a number of ways. But for today, I want to show you how we added Twitter’s widget to the sidebar on our site (notice it to the right of this post). This handy little tool not only let’s our readers know that we’re on twitter, it also let’s them know what we’re talking about and who we’re talking with.

Delegate These 5 Tasks & Save Time With Every Real Estate Transaction

Ticor’s customer service / property research team is well known in the Puget Sound area for their depth of knowledge and high level of service to local Real Estate professionals. They are the best of the best when it comes to providing property information with a smile.  And while our customer service team is doing what they do best, they’re also saving our clients the most valuable resource they have which is time.

How many times have you thought, “If I just had more time…” Would your own personal Property Research Assistant help?  Experienced real estate professionals are experts at leveraging their most valuable skills for the most profit.  And our most successful clients tell us that working with the Property Info professionals at Ticor Title Company, really saves them time.  Below is a brief list of things our team can do for you so you can focus your time on what brings you the most profit.

Delegate these 5 tasks to Ticor’s customer service team & save time:

  1. Pre-Listing Pack or ‘Trio’: Profile, map, and deed with legal description
  2. Check Owner’s Name(s) or find a phone number
  3. Mailing list & labels around a new Listing
  4. Tax assessed value
  5. Plat map with dimensions

Ticor has a dedicated Team of ‘Property Info’ professionals, who will find these answers for you.   Next time you need to do some research, delegate it to Ticor!
Serving:

King & Snohomish County

Diane Brittenham
Anne Serex
Susan Barney
425-255-6969
425-467-0377
206-720-6969

Pierce County

Rachel  Jacobson
(253) 383-0055

Emerging Markets

Mandy Quach
(206) 720-6969

(Outside of these counties too!)
CS.WA@TicorTitle.com

Save Time on every real estate transaction

Save Time on Every Real Estate Transaction with Ticor Customer Service

Click the image to the left for a sample list of services from Ticor’s Customer Service / Property Info Team

 

What is a Closing Protection Letter in Washington State?

A closing protection letter (“CPL”) is a written indemnity agreement requested by a lending institution or bank (“lender”) and issued by the title insurance company (“underwriter”) that will issue a loan policy insuring the lender. CPLs provide specific assurances to the lender which safeguard them in the event that dishonesty, fraud, or negligence cause failure of the escrow agent to properly disburse the closing or escrow funds in a real estate transaction. A CPL also provides assurances to the lender that their written closing instructions have been complied with.

CPLs are issued in most states and some of them restrict, limit or even prohibit their use. According to Washington State law (RCW 48.05.330) CPLs may only be issued when a title insurance company or its issuing agent is handling the closing.

Occasionally a lender will request a CPL when the closing is being handled by an outside party (i.e. independent escrow company or attorney) and not the underwriter or its issuing agent. In these cases the CPL can only be issued after a sub-escrow is opened and the underwriter or its agent has been instructed to accept lender loan funds, collect title related fees and premiums, the sub-escrow fee, payoff all liens that appear in the preliminary title commitment (i.e. “title report”) and forward the balance of funds to the outside party. The CPL does not protect against acts of the outside party.

Closing protection letters are largely misunderstood and misused. A CPL is not insurance and its application is limited. However, the lender”s title insurance policy does contain provisions which, among other things, insure the lender that it has an enforceable and valid lien on the subject property. Furthermore, the escrow agent must also have errors and omission insurance which provides protection against fraudulent or dishonest acts as well as unintentional errors and omissions.

Beware of 16 Red Flags that could delay your escrow closing

Avoid red flags that could delay escrow closing

Terms such as “Notice of Trustee’s Sale” are what we would refer to as a Red Flag. And sometimes they can slow down an otherwise smooth transaction. Some attention may need to be paid to these.

For today’s home-buyer it’s plain to see the immense value that a thorough real estate title examination brings.  The greater economic challenges of the last few years has trickled into the real estate transactions of today by way of what we call “clouds on title”. And lately the clouds have been plentiful.  Not to worry, however! Identifying potential “red flags” on a title report early in the process can save time in the long run and help set proper expectations for everyone involved in the real estate transaction.

A familiar story…

Our friend Rick the Realtor was happy to find his buyers the perfect home.  Their offer had been accepted, and next, he expected to review the sellers Title Report.  Everything looked great until Rick saw a recorded Notice of Trustee’s Sale.

Terms such as “Notice of Trustee’s Sale”  are what we would refer to as a Red Flag.  And sometimes they can slow down an otherwise smooth transaction.  Some attention may need to be paid to these.

Thanks to being aware of Red Flags, Rick the Realtor knew that some fact finding would help settle whether or not the Notice of Trustee’s Sale that he saw was really an issue.

At Ticor, we’re always glad to help you understand what these terms mean.  And, most importantly, we’ll work closely with you, to help address and resolve these matters early in the course of the transaction.

16 Examples of Red Flags to be aware of:

  • State Warrants
  • Federal tax liens
  • Mechanics’ liens
  • Encroachments
  • Seller not vested in title
  • Property in estate or probate
  • Property over-encumbered
  • Judgments against seller or buyer
  • State tax or Support liens
  • Pending law suits
  • Paid, unreleased loans from individuals
  • Real estate contracts
  • Access questions
  • Housing code violations
  • Statement of Identity / I.D. Affidavit
  • Short Sales
*This is a partial list of what we may consider to be red flags. For more information please contact your Ticor Representative.

A New Look and Delivery Method for the GNG Newsletter

The Good Neighbor Gazette Newsletter has been one of our downloadable marketing tools for years now.  It’s a simple two-page monthly newsletter with interesting information about home, family, real estate, food and a little technology thrown in for spice.  It takes just a minute  to customize it with your name & branding and it’s a great little tool for staying in touch with prospects, past clients, and your general sphere of influence with something of value.  Real Estate is a relationship business and every point of contact like the GNG Newsletter can make a difference in generating leads and referrals!

Now there are a few improvements that we have made to the GNG and we hope you find them to your liking.

The first is that earlier this year we gave it a fresh new look using verdant colors that evoke a warm sense of home-ownership.  The front page banner graphic has a crisp looking image of fresh cut grass and a white picket fence with a new casual script logo above.

Secondly, we are now delivering the Newsletter as a bundled package of files.  This bundle includes Word, PDF, and Publisher formats so that all types of users can customize it before printing or emailing it.

Thirdly, we have updated our delivery method for the newsletter using our Ticor Storefront eCommerce solution.  In a nutshell, anyone can now download the GNG up to three months in advance!  No more waiting for the latest edition to be posted to the website.  If you want to work ahead with your email newsletters or mailers, they’re ready for you!

And finally, we have added a large preview feature to our storefront so you can actually preview each article before you purchase! To view the large preview, just click on the thumbnail image of the newsletter.  We think you’ll be pleased with the generous size of the preview!

So with a fresh new look and convenient delivery method, it’s never been easier to use the GNG Newletter to stay in touch with your past clients, prospects, and sphere of influence!

Click here to check out the Good Neighbor Gazette now.

What is a QR Code and How Can I Use it in My Marketing?

QR Code - Clock Hour Class

QR Code (QR stands for Quick Response) is a type of bar code that was invented by Toyota’s Denso corporation back in the 90’s so they’re not quite the newest thing.  However, QR Codes are a new thing you’ll find on some of our printed materials and I’m excited about that!

Why?  Because QR codes can be used to link print items to the web!! It’s like having a hyperlink on paper.  Printed fliers are now cool again! Not that I want to kill trees or anything… But now printed items have a level of functionality that they never had before.

Here’s an example of how we’re using it at Ticor:

QR Reader Example

QR Code used on a flier

We have a Clock Hour Class coming up in December.  And people can register for this class online at Eventbrite.  Now when we print up (or pdf & email) our nice fliers to spread the word, we can include a QR code that is actually a link to the registration page.

So when someone gets the flier and points their smart phone’s QR code reader at the fuzzy little square on the flier, it will immediately launch their smartphone’s browser and take them to our registration page.  They won’t have to sit and type the whole web address of our registration page into their browser on that tiny keyboard. I must admit that when I tried it the first time, it was a thrill.

So if you have a smart phone that will run a QR code reader, try it out on one of our clock hour class fliers!  Or, if you can’t wait you can try it on the code above!

And stay tuned for a follow up post on what we did to generate the QR code and make it link to our registration page.

Enjoy!

Matt Sweet
Ticor Title

Update: Check out our post on how to generate a qr code.

What is an Easement and Why Should I Care?

property easement

You’re out shopping for property and may have just found your dream home when your Realtor® informs you that “the driveway easement to the street runs over the neighbor’s property over there.” Great! Huh? Is that a problem or what? In this case it’s not a problem at all. The copy of the title report that the listing agent provided confirms that the easement is included in the legal description and is therefore “ok”.

In our scenario the dream home property benefits from the easement over the abutting neighbor’s property. That same easement burdens the neighbor’s property.

So, what exactly is an easement? One definition that I like a lot is: “the right to use someone else’s property for a specific purpose.”

Appurtenant:
adj. pertaining to something that attaches. In real property law this describes any right or restriction which goes with that property, such as an easement to gain access across the neighbor's parcel, or a covenant (agreement) against blocking the neighbor's view. Thus, there are references to appurtenant easement or appurtenant covenant.

The dream home property has an appurtenant easement over the neighbor’s property. Its owners and/or guests have the benefit of coming and going over the driveway area without needing permission from the neighbor to cross over their land. On the other hand the neighbor that is burdened by the easement must not impair or restrict the use of the easement area on their property.

If a piece of property does not abut or “touch” a public road it will be necessary to establish an easement over the parcel(s) of land that lie(s) between the nearest public road and the property. Without a valid easement a property owner may not have the legal right to go over their neighbor’s property and that could cause big problems down the road (pardon the pun). Without legal access a property is said to be landlocked or having lack of access.

Not to worry! Once you purchase your dream home you can rest assured that your Ticor Title policy insures that you the owner have access rights.

If you have an active transaction with Ticor Title  and would like to review the preliminary title commitment with us, please contact your Ticor Representative or call our headquarters at 425-255-7575.

Donation Matching & Food for Pictures… Get more mileage out of your donation!

Ticor Gives Back Bringing Joy to FamiliesOur Ticor Gives Back campaign is in full swing with our staff rallying to fill the boxes in each branch and our giving spirits are high. On Monday alone, our Renton branch filled 11 boxes (200 food items). And the emails back and forth on our team are so positive and full of gratitude as we work together to get involvement. It is a great thing to be a part of.

Now, I mentioned in my last post that there are a few of us who have offered to donate extra under certain circumstances. So to make it easy, we’ve put together a couple videos to explain:

Denise Eider, our South King County representative has offered to match every can that her clients bring in! Way to go Denise!
I (Matt Sweet), the tech. man on the sales team, have committed to donating a food item for every picture or video we receive of someone participating in the drive.

If you would like to get involved, please email us, call 425-255-7575, or stop by one of our escrow branches with a donation of any amount.