REO Transaction? Watch for these details when setting client expectations…

Checklist for REO Transactions

Buying an REO (or Real Estate Owned) property involves a slightly different escrow process than your standard home sale. Realtors and Buyers need to remember that they are in escrow with a Bank/Lender (the “seller”) and the Bank/Lender has strict procedures in place that must be followed during the process.  Understanding certain details can help you set the proper expectations with buyers and help ensure that your REO escrow goes as smooth as possible.

Here is a glimpse of the details to look out for if you’re in an REO transaction.

Tips for smoother REO Transaction

Click the image above to download tips for REO transactions.

The Seller – In an REO transaction the Seller is an “out of state” Bank. The Bank contracts a 3rd party “Asset Management Company” which represents them in the transaction and approves the final escrow closing documents. All correspondence is done by email or by their website.

Title Commitment (prelim) – Escrow will handle ordering title to insure it is ordered from the appointed “title company”. This could be a local or national division depending on the arrangements the Seller has made.

Home Owners Association (HOA) – If you are aware of an active HOA, please be sure Escrow is also notified to insure all delinquent dues are paid current at time of closing.

Loan Documents – Should be delivered to Escrow five working days prior to closing. Once loan documents are received and Buyer’s Lender has approved the estimated HUD Settlement Statement, escrow can set an appointment for the buyer. The earlier the documents are available, the better the chances are of an on-time closing. A HUD Settlement Statement should be available to the Lender 24 hours after receipt of Loan Documents.

Proactive Communication

Our seasoned escrow staff believes that clear, early, and frequent communication with our clients is critical with every escrow closing.  With that in mind, we provide the information here to our clients immediately when an REO transaction is opened.  Being aware of potential roadblocks early in the process allows time for all parties to be better prepared and sets the stage for a positive closing experience.

Courtesy Signing – If the Buyer is unable to sign with the assigned Escrow Officer, an approved Mobile Notary will be required and an additional fee could be charged. Your Escrow Officer will arrange for the courtesy signing once the loan documents have been received.

“Seller documents cannot be sent until Buyers documents have been received.”

Seller Documents – Seller documents cannot be sent until Buyers documents have been received. The REO Seller and their 3rd party Asset Company may require 24-72 hours to approve the HUD after ALL demands have been received.

Courier Fees – Buyer courier fees will be “estimated” at time of signing and adjusted to the actual cost of courier fees at the time of funding.

Buyer / Lender Funds for Closing – To meet closing deadlines, we highly recommend wiring the funds. If you send a Cashier’s Check it will need to be held in the Trust Account overnight before we can record. If a Personal Check or Official Check is presented, it could require a 10 day hold before we could close and disburse funds.

Funding – Escrow will coordinate with the Buyer’s Lender on the Bank’s HUD approval before funding can occur. (Changes to the Seller’s side of the HUD require additional Seller approval).

Have you been a part of an REO transaction where one of these potential hurdles was cleared because an escrow officer alerted you? Please share by commenting beow!

Water Boundaries & Title Insurance

waterfront boundaries and title insurance
The Realtor® has a great listing – it’s beautiful beachfront property. But, the buyer wants to know what she actually gets for the premium price. Is the beach hers? Can anyone else walk along the beach in front of her house? Can she put in a dock for her boat? If the beach starts to erode can she put it something to stop it? Will the title company guarantee her rights to the beach?

tipTip: Click the keyword links in this post to view the definition of the keyword (i.e. click on: navigable waters). Click the link again to hide the definition.

There are three main areas of concern to the buyer

  • The first is title – that is, who owns the beach?
  • The second is the location of the boundaries – how far out does the owner’s title extend, where is the boundary between the upland and the beach, and does the upland boundary extend straight out into the water?
  • The third is use – what can the owner or others do on the beach or the water?

These waterfront issues are complicated, and the Realtor® should never assume anything about who owns what and what rights the upland owner has to use or control use of the beach.

Who owns the beach?
On navigable waters on Puget Sound, the title company will only insure land that was deeded by the State. But for non-navigable lakes or streams all upland owners would own not only the “beach” but also the submerged land out to the center. But then, where is the location of the side boundaries that extend out into the water? If a dock is built, how can the upland owner know if it extends over the line? That issue will likely require a survey that will satisfy both owners.

What use can be made of the beach or the water?
A waterfront owner has riparian rights to use the water but so do all the other upland owners. None could, for example, dam a stream to create a pond or re-route the course of a stream or dredge or add fill to a lake. Water itself is not owned privately – it’s a natural resource, so the public can often also use the water.

Also, the state or federal government has broad regulatory authority under the public trust doctrine affecting both the water and the uplands to the extent it is necessary to protect water quality, fishing resources and public commerce. So a bulkhead intended to preserve upland property, or a dock into the water or even a house on the uplands can be regulated or prohibited altogether.

“A waterfront owner may be out of luck if there are changes to the course of a stream that eliminate access to it.”

And nature will take it’s course…
It’s also important to note that nature can impact title to the land. For example, a waterfront owner may be out of luck if there are changes to the course of a stream that eliminate access to it. More importantly, if a stream is the boundary, owners on both sides might either gain or lose land. If the change is sudden (a man-made or natural mudslide, for example) title won’t change, but the land may be high and dry with no access rights. But, if it happens gradually over a long time period, the boundary line might also move – meaning one of the owners gains land and the other one loses land, but water access would remain for both.

water boundaries and title insurance

The title company will only affirmatively insure title and boundaries of waterfront land to the extent they’ve been established of record, and if not, will take exceptions to such matters. And, no use rights will be insured. Instead, exceptions for possible rights of other riparian owners or the public will be in the title policy.

Have you dealt with a water boundary concern on a real estate transaction?
Please share by leaving a comment below!

Using ‘Google Places’ for better search results…

As a part of our continuing effort to provide better service to our clients, we have taken the time to set up Google Places pages for each of our escrow branches in the Puget Sound area.

Recommend Ticor on Google Places

Click to rate Ticor Title Seattle on Google Places

What is google places?

In a nutshell Google places allows a company to “claim” their business in Google’s index and subsequently provide accurate information about the company including phone, address, website, hours of operation, parking, amenities, photos of the building, videos and more.

A google places page should give consumers a good impression of the company,  make it easy to find, and make it easy to provide feedback, and claim promotional offers.

The Results…
The result for our clients is that when they do a google search for “Ticor Seattle“, “Ticor Puyallup“, “Ticor Gig Harbor“, or any of our other locations, one of the first search results they should get is a street map with accurate information about each particular branch right next to it.

Ticor title seattle

A Screenshot of Ticor Seattle Google Places Info in Search Results

The Numbers…
When we first claimed our pages and filled them out, our main intention was to simply provide accurate info to google and hopefully boost our search engine presence by telling Google more about our escrow branches.  But we really had no idea what to expect in terms of views, clicks, and consumer search behavior.  And now that we have had a chance to view our page views and click metrics over a year, it’s quite amazing to see the numbers.

What can we learn about our clients / prospects?
When we log in to our google places dashboard we can learn valuable information about our clients (or potential clients).  Here’s a list of info that Google tells us about each of our Place pages:

  • Number of page views
  • Page views by day of the week / month
  • Number of clicks for more info
  • Number of clicks for driving directions
  • Number of clicks to our website
  • Top search queries
  • Where driving requests came from

What can we do to generate leads?
Like Yelp.com, Foursquare.com and other location-based social sites, Google places gives us a place to provide offers, discounts, coupons, etc.. For example we can add a coupon to our places page that reminds people of the discounts we offer on title and escrow when orders are placed electronically or when title and escrow are opened at the same time, etc…

A good place to be…
So in a nutshell, Google Places is free, it provides us with a means of providing accurate business information to people searching for us, it helps us to make a good impression, it tells us a bit about consumer search behavior, and allows us to generate leads.  It makes good business sense, and that makes Google places a good place to be.

Have you used our google places pages to find one of our branches or provide directions to a client?

Let us know by leaving a comment below!

You look good when we look good! A new theme for ticorblog.com

Woman Reading Ticorblog.com

We’re excited to announce that we’ve made a few upgrades to our blog here at ticorblog.com. After one year with the same look & feel, we decided that a facelift with a few feature improvements was in order. So without further ado, here’s a quick breakdown on how you can get the most from our new layout:

We Make You Look Good Too
If you’re on our emailing list, chances are you’ve read our posts and shared them with colleagues and clients. We realize that the content is what really brings value here, but sometimes the way in which it’s presented can make all the difference in the world. Now with a more elegant and upscale aesthetic, you can feel even better about sharing these articles and look good in the process! Read more

Real Estate Legal Descriptions in Plain English

Legal descriptions of property, those all-important components of a Purchase and Sale Agreement, fall into two basic categories: platted and unplatted properties. Of course, there are many variations in each category! For your reference, we have put together a quick reference with examples below.

Click on any link below to see examples of various types of legal descriptions & the maps that go with them.

Platted is a general term for properties where a subdivision involving an approved survey map and plans that describe each lot or unit and that are recorded with the county. Subdivisions, shortplats, and even condominiums are under this umbrella. The “description” part of the legal description is a sort of shorthand that provides location and dimensions by referring you to a specific parcel on the recorded map.

  • Subdivisions often have “Lot and Block” legal descriptions which reference one or more lot numbers, sometimes a block number, the subdivision name plus the volume and page that it was recorded under in County records. In some cases the legal description may reference a recording number rather than volume and page – this is common with newer plats in Pierce and Snohomish counties. Click here to view an example of  a Lot & Block Map.

Example of a Lot & Block Legal Description

  • Shortplats usually involve fewer lots than a full subdivision (or “long plat”). The legal for a shortplat will typically involve a lot number or letter, and the recording number. Often it will include the city or county planning department’s file number as well.  Click Here to view an example of a Shortplat Map.

Example of a Shortplat Legal Description

  • Condominium legals reference Unit number, sometimes a Building number, and the subdivision name with the volume and page that it was recorded under in County records plus the Condo Declaration Recording Number.  Click here for an example of a Condominium Map.

Example of a Condominium Legal Description

Unplatted refers to all the other lots that don’t have an approved plat recorded. (It’s never a perfect world so there may be some exceptions to this rule.) These legal descriptions are all about location and dimensions.

  • Unplatted legals typically reference the Section, Township and Range that the lot is located in, plus quarter-section and sometimes a whole series of quarter-quarter details. These numbers refer to the public land survey system that covers the whole country into square-mile Sections. They allow us to pinpoint the exact location of a lot. Click here for an example of an Unplatted Parcel Map.

Example of an Unplatted Legal Description

  • Unplatted legals may take the form of metes and bounds (distances or dimensions from point to point that literally describe the lot).  Click here for an example of an Unplatted Parcel Map as described with Metes & Bounds.

Example of a Metes & Bounds Legal Description

Example of a Metes & Bounds Legal Description

  • Finally there may be references to other features (shorelines, roads, existing plats just to name a few) that may help to identify location or dimensions.

If you have questions regarding a legal description on your purchase and sale agreement, our property information specialists are prepared to assist.

If you have questions or comments, let us know by commenting below.  Or Contact us today at 425-255-6969!

Also, please click to view our related article: What Makes a Real Estate Description “Legal”?

Keys to a Successful Escrow Closing

Keys to a successful escrow closing - have your ducks in a row

Getting your ducks in a row for a smooth escrow closing

Closing on a home can be an exciting and stressful process all at the same time. With so many potential speed bumps it’s important we make your closing flow as smooth as possible. At Ticor we believe one of the easiest ways to accomplish this is by educating buyers and sellers as they prepare for the big day. In particular we’d like to highlight some of the simple steps a buyer/seller can take to expedite the process.  We call these steps the “Keys to a Successful Closing”.

Prior to Closing

Buyers:

  • Check that all conditions have been met by your Loan Officer.
  • Send the names of your lender and homeowner’s insurance company to your Escrow Officer.

Sellers:

  • Gather the following and deliver to your Escrow Officer:
  • Your forwarding address
  • Any existing mortgage information
  • Identify leased equipment
  • Homeowner Association information
  • Utilities (if they are to be paid out of escrow.)

Buyers and Sellers

  • Confirm with your agent that all contingencies have been satisfied.
  • Keep your agent informed of any vacation plans or times you will be unavailable.
  • If you plan to have your documents reviewed by an attorney, please notify your Escrow Officer at least 48 hours prior to signing.

Before Your Signing Appointment

  • Expect to sign at the escrow company one or two business days before the closing date.
  • If funds are required to close, be prepared to bring the monies in the form of a cashier’s check 24 hours before recording or wire transfer the same day as closing.
  • Have a valid photo identification available at your signing appointment: Driver’s License/State ID, Passport, or Green Card.
  • Expect the signing to last approximately one hour if you are the buyer and 30 minutes if you are the seller.

If you have questions or comments about the closing process, please share by commenting below!

Yours, Mine & Ours… Homesteads in Washington State

John and Jane Dough just got married and put in an offer on a house, but John’s credit isn’t too hot. As it happens, Jane has good credit, so Jane plans to buy it in her name alone. But, the bank still wants him to sign as well.

American Gothic

Can’t it be her separate property?

The answer is yes – but that’s not the issue for the bank. Washington has two separate statutes dealing with who must sign a Deed of Trust – one deals with community property and the other applies to homestead property.

  • Community property is acquired after marriage or after registration of a state registered domestic partnership and is jointly owned.
  • A homestead is where the couple lives or intends to live and it’s automatic (RCW 6.13.040).

Jane can own the property as her separate estate and in that case John wouldn’t need to sign the Deed of Trust – unless it is or will be their homestead. That’s where the other statute comes into play. RCW 6.13.060 requires both spouses to execute a Deed of Trust (and a deed for that matter) of their homestead, or else it isn’t a valid lien. It makes no difference if it’s separate property of one spouse. So, the bank isn’t asking John to sign in order to encumber any title he has – he doesn’t have any – but rather to encumber his statutory homestead rights in that property.

More importantly, if John doesn’t sign the Deed of Trust the bank would not even have a valid lien on Jane’s interest.

“The homestead of a spouse or domestic partner cannot be…encumbered unless the instrument…is executed and acknowledged by both spouses or domestic partners…”

John’s credit isn’t good – the house can be Jane’s separate property – John still has to sign. How is all this resolved? Well, typically the bank won’t insist that John be on the title, and won’t have him sign the note – thus avoiding using his credit. He just needs to sign the Deed of Trust.

Oh, by the way, the borrowing spouse can execute the Deed of Trust on behalf of the non-owning spouse using a power of attorney. In Washington, RCW 6.13.060 specifically allows this.

Yours, Mine & Ours Review Points:

  • Community Property is property acquired after marriage or registration of a state registered domestic partnership
  • Homestead is where a couple lives or intends to live (RCW 6.13.040)
  • A spouse or partner can own separate property, but if the property is a homestead both husband and wife or partners must execute a deed of trust; otherwise it is an invalid lien (RCW 6.13.060)

Using Facebook On the Job… with Facebook Lists

Facebook Friend Lists

Have you ever signed in to Facebook and wished that you could filter or sort the newsfeed based on friend type (i.e. family members, coworkers, school friends, customers, etc)?  The Facebook Lists feature provides users with an easy way to create segments for various types of friends and create security settings based on those lists.

Once you’ve created a list, you can filter your newsfeed to display only the posts from people in that particular list.  And vice versa, the lists feature also allows you to post content that is seen only by people in particular lists.

This is a huge time saver if you’re goal is to organize your friends and connect with different groups of Facebook friends at different times.

Facebook on the job…
It goes without saying that throughout the business day  there may be times when it’s more appropriate to connect with certain groups of friends and not others. For example, during the course of the day at Ticor, I may want to pay less attention to Aunt Tilly (who just discovered Farmville) and instead be more intentional about listening to Real Estate professionals and what’s important to them (No offense to Aunt Tilly!).  The Facebook lists feature makes this a cinch.

In a nutshell, the Facebook lists feature:

  • Helps organize friends into groups
  • Helps reduce potential distractions during the work day
  • Provides a means for sharing content privately with certain groups
  • Saves time!

To find out how to create Facebook lists, click here.

By the way this is one of the many things we cover step-by-step in our Facebook Setup and Strategies for Real Estate Clock Hour Class.

Check out our clock hour classes here!

Enjoy!
Matt Sweet
@sweetmd

Behind the Scenes: A Video Tour of our History-Filled Backplant

Ticor Backplant Pierce County WA
[Note: Our Renton office has relocated to Columbia Center, Downtown Seattle]These days, most of the real estate property research our title examiners and customer service team does for you involves sophisticated online databases and image libraries using up-to-the-minute technology. But occasionally we rely on a much older technology as we research the chain of title for real properties in King, Pierce, and Snohomish, WA.

Since the early 1980s, recorded documents have been compiled into searchable databases. We can search by legal description or by name to find deeds, easements, and other public-record information. Most documents recorded since 1990 have also been imaged, so we can usually send you legible copies of recent documents very quickly.

However, sometimes we need documents that are too old to be found in these more recent databases. For those, we turn to our backplant. Backplants are a series of log books that show all recordings in a county. Our records go back to the mid-1800s. Depending on the county, these logs may be on microfilm or may be large hand-written books.

As you can see in the backplant video tour below, the hand-drawn maps and fine penmanship evoke feelings of appreciation for the care, skill, and artfulness of the many people that crafted and maintained these books so many years ago.

 

Ticor Title Company Fact Sheet 1Q 2011

We don’t like to boast, but occasionally we like to remind our clients of the financial strength behind our brand. If your real estate title is insured with Ticor, you’re on solid ground. Below is a press release from our parent company FNF for 1Q 2011.

Ticor Title is a member of the Fidelity National Financial family of companies, which is a leading provider of title insurance, mortgage services, specialty insurance and information services, and is the nation’s largest title insurance company through its title insurance underwriters. Collectively, Ticor Title and the FNF underwriters issue more title insurance policies than any other title company in the United States.

The first quarter of 2011 represented our strongest quarter in a number of years, as our direct operations benefited from strong refinance closings early in the quarter and consistent closings throughout February and March.

Another contributing factor was the continued robust nature of our commercial title business, which saw revenue grow by 35% over the first quarter of 2010. We are encouraged by the strong start to the year in the commercial business and based on our pipelines, are becoming more and more confident that the commercial market will continue to yield positive results in 2011.

We always work hard to maintain industry-leading margins even in the face of cyclical headwinds, and this quarter is a reflection of our success with those efforts. The loyalty of our clients, the diligent effort of our employees to be the best in the industry, and the commitment of our local managers to provide decisive leadership in their respective markets significantly positions FNF for a strong 2011.