4 Hot Tips for Working with Escrow on an REO Closing

Real Estate Owned transactions are much more common now than in recent years. And if you’re a Real Estate agent in the Seattle area, chances are you’ve been doing your homework on how to make these types of transactions flow better for everyone involved. Our escrow team has put together a few tips that will help:

The Seller requires the Buyer’s name(s) to appear on the purchase and sale EXACTLY how the vesting will be displayed on the ensuing Deed.
If there is a discrepancy between the two, the Seller will require an addendum to rectify this discrepancy. This can save a ton of time in the beginning portion of the REO Process and help eliminate future delays in closing.

Always review the Seller’s “Counter Addendum” to avoid surprises.
Escrow reviews the Counter Addendum for instructions regarding the closing. Some things we normally see addressed are: Closing extension fees, max seller paid closing costs, excise tax, actual closing dates, “property as is” clause, utilities ‘not’ paid through closing, etc.

4 tips for REO Escrow Closing

Click the image above to download 4 hot tips for REO closings.

Remind your Buyers that their Lender’s delivery of Loan Documents is the beginning of the final stage of closing.
This means Escrow absolutely needs the Loan Documents to generate a HUD for the Buyer’s Lender to approve. Consequently Escrow cannot send a HUD for the Sellers approval until the Buyer’s Lender is satisfied with the Buyer’s portion of the HUD. This is different than your standard transaction where your seller can sign ahead of time.

Depending on the Seller and their processing time frames; reviewing, signing and returning the Seller Approved/Signed HUD can take anywhere between 24-72 hours.
What this means is the Buyer’s Lender cannot fund the transaction until they have a Seller Approved HUD, even if Escrow has signed and submitted the Buyers funding package to the funding department. This is a commonly misunderstood portion of the process and can help set Buyer expectations in the final days of closing. It is best to plan for the full 72 hours anticipating any last minute delays from the seller.

How about you? Do you have questions or feedback regarding the REO closing process? Please leave a comment below!

Deeds Indeed

Deeds Indeed

Signing the deed

Consider this… A bank is selling REO property, but will convey by “special” warranty deed, rather than the statutory warranty deed we usually see. Isn’t it still a warranty deed? Will the purchaser accept this? And, isn’t a statutory warranty deed required?

Types of Property Deeds

There are several types of deeds. A warranty” deed warrants title for all matters, no matter what they are or when they were created prior to the date of sale. It binds the seller for the benefit of the buyer and all heirs and assigns of both. Express warranties aren’t shown in the deed because Washington’s statutes say what they are – hence a “statutory” warranty deed includes them without recitals in the deed. (The warranties are set out in RCW 64.04.030.)

A quitclaim deed means that no covenants of warranty are included at all. The buyer gets only whatever interest the seller has, good, bad or ugly (and may even be nothing). It is often used to clear a cloud on the title. (These deeds are provided for by RCW 64.04.050.)

A bargain and sale” deed falls somewhere in the middle. It also has statutory definitions, and means the seller is limiting covenants of good title to only matters created during the time that the seller was in title or as specified in the deed. (The specifics are in RCW 64.04.040.)

The ability to further limit warranties gives rise to the special” warranty deed. It’s not a statutory form, but simply means the grantor is expressly stating in the deed what the limited warranties, if any, are.

Warranties may be unacceptable to a seller who shouldn’t have to assume that type of liability. Thus, a special warranty deed is used in fiduciary situations, including (in addition to the sale of REO property) a personal representative in a probate, a deed of trust trustee, and a trustee of a trust – all parties who aren’t responsible for matters arising before coming into title or who don’t have any active ownership of the land.

Warranties are valuable to a buyer because if there are problems or defects in the title, it is important to be able to sue the seller, even when the buyer has title insurance. That’s also why title companies like a warranty deed, because they have subrogation rights under the policy, meaning it can step into the shoes of the insured and sue the seller under the deed warranties. The buyer’s title policy still provides the same coverage no matter which type of deed is used.

Only the parties’ respective attorneys can offer advice in this area. The seller and purchaser need to agree on the form of deed. They each have valid legal reasons for their requirements. While it is unlikely that any REO seller will be willing to offer a statutory warranty deed, the form of deed ultimately comes from negotiation.

Do you have a question or comment about deeds?  Please leave a comment below!

Sustainable Development Clock Hour Class – March 24

Regional population growth is changing the Northwest!

Would you like to Gain an understanding of the patterns and demographics of our growing region and see the interrelationships of sustainable communities, smart growth and natural habitat conservation?

sustainability clock hour class seattle

Click the image to download the flyer

Come to this 3-hour class to familiarize yourself with the lingo of sustainability and develop your skills in conveying your knowledge to your clients.

Green site development is here to stay; it is rapidly growing and with more regulations coming that will make understanding these practices necessary to your business.

When:
March 24th 2011 10-1PM
3 clock hours $35
Instructor: Patty Moriarty

Where:
Sterling Savings Bank Home Loan Division(Validated Parking!)
Metropolitan Park East Tower
1730 Minor Avenue, Suite 1100
Seattle, WA 98101

Register Today  – Call or Email:

Patty Moriarty 206.898.0356
patty@nativegrowth.com

More information at NativeGrowth.com

QR Codes and how we generate them

A while back we talked about what QR codes are and how we applied them to our marketing process for our Clock Hour Class in December. As a follow up to that post, today, we’re going to talk about how we went about generating our own unique QR codes.

How to generate a QR Code

Code Machine

Remember that QR codes have many applications. But, for our purposes, we are using the codes to enable smartphone users to easily find our web page of choice when they point their smart phone at our code which is on a printed flyer. If you think about it, QR codes are adding a whole new level of interactivity to printed materials. We joke about how antiquated print has become, how it’s not really forward-able or shareable, and how you can’t tweet it or add it to your favorites. But now that’s not such a problem because if a print item is QR code-enabled, a person with a smartphone can take action and (in Ticor’s case) register for a class, read a print article on the web, watch an escrow video, or ultimately order title and escrow

So Here are the steps we took to get and apply our QR code:

1. We decided what page we wanted our readers to land on. In our case we wanted our readers to have an easy way to register for our Real Estate Clock Hour Class via eventbrite.com. Our actual URL was http://foxburyclockhours.eventbrite.com.  We’ll call this the landing page URL

2. We copied the Landing Page URL and pasted it into a QR Code generator. We used http://qrcode.kaywa.com/. It’s free and easy to use. The QR code generator created our QR code and we saved it as an image to our hard drive.

3. We added the code to our print piece. We use InDesign, Word, and Publisher for various print pieces and each of them allow us to overlay the QR Code wherever we need to.

4. Finally, we tested it! It’s actually still a thrill to effectively “click” on a piece of paper to navigate to the web!

For more information about our Title & Escrow and Technology Clock Hour classes, please check out our Puget Sound Clock Hour Classes Page!

Property Information on demand saves the day

Real Estate Buyer

Click the image to download “5 Reasons to Order a Trio”

Having the right property information at the right time can sometimes make or break a sale.  At Ticor, we live and breathe property information.  It’s our job to examine every parcel in the Puget Sound area that we insure to know how it’s described, who has a claim to it, and how it may be used. And naturally this area of expertise becomes invaluable when a Real Estate agent needs information fast. Below is a true story that took place in December:

Right around December 16th, most of us were occupied with Holiday prep and planning.  But for Shawn L., it was a good day to handle a sign call.  Shawn had moved to a new brokerage in West Seattle a few months earlier, and he had several listings on the market.

‘Tell me about your listing,’ said the client.  This buyer was interested in a home that Shawn had listed in Seattle’s Central District, and phoned around 2 pm to ask about a showing.  And the buyer had several questions, most of which were easy to answer immediately. But, when the buyer asked ‘How much are property taxes for this home?,’  Shawn had to get help fast.  So, on the way to his showing appointment, he called Julie McCullough Hale with Ticor.

‘Can you get me property taxes for this address?’ asked Shawn.

‘Yes!  How about a property profile, legal description, and a plat map too?’ said Julie.

‘That would be awesome!’ replied Shawn.

And in 20 minutes, Shawn had all of this info at his fingertips, delivered to his iPhone.

Ticor sends free property information to our customers every day. What Shawn received on his phone was called a ‘Trio’ (Property Profile, Map, and Deed with Legal Description).  This is also called a ‘Listing Packet.’

Often, agents order title work at the time of listing a property, and Ticor always confirms this with an order number, and a ‘Free Trio.’  And even though it’s something that goes out dozens of times every day, our Property Info staff knows that every request is critically important to whoever contacts us.  In Shawn’s case, he needed his info on the run, since he was driving to meet a client.  He didn’t have time to personally research. So, he called the people he knew he could count on for accuracy and a fast turn around.

So, what happened with Shawn’s prospect?  Later that day, Shawn made another call to Julie with Ticor.

‘How quickly can we close for a cash buyer? I think he’d like to do so before Christmas.’

Property Information sent to your smartphone

Property Information sent to your smartphone

Julie let him know that with a clear title report, and a cash buyer, it was quite likely that closing could be completed within a week.  The next morning, his office called Ticor Escrow for an earnest money pick up.  And the best part – this transaction closed in under a week.  A nice end to a busy year for Shawn and his office.

‘We’re reminded every day how important our Property Info Services are,’ said Ryan Kalalau, Ticor Sales Manager.  ‘Getting the right info delivered quickly, is one of the most important services we offer.’

Thanks to:  Shawn L., West Seattle agent

Here’s a link where you can order your own ‘Free Trio’ right now!

Order free Ticor Trio HERE

Ticor Seattle / Renton:  206-720-6969 / 425-255-6969
Ticor Bellevue:  425-467-0377
Ticor Puyallup / Pierce County:  253-383-0055
Ticor International:  425-204-5113
Ticor Email for Property Info:   cs.wa@ticortitle.com

Download “5 reasons to order a trio” here

Do you have a story about how having the right information at the right time made the difference between winning and losing a deal? Please leave a comment below!

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.