Very bizzare. I am buying a property from a lady who owes a 1st and a HELOC with WAMU. She opened the line back in July, got one statement and after that there was some fraud on the account, someone tried to wire money to the acct and she took some of that and put it over to her wamu checking acct. As soon as she saw it was fraud she shifted the money back to her credit line. Wamu shut the line down and she has not been able to get a statement from her since. She can't get answers or make any payments (on the amount she is responsible for). I had a prelim title report done and the first is the only thing that shows up. It is as though it dissapeared. So I want to buy the house from her (no agent). My plan is to transfer the deed and then refi it. I guess I can get title ins but I don't want trouble down the line (for her either) on this HELOC. I did find out that the acct is in collections. they even told me how much to get it current but they will not take her money to do it.
2007-03-06 17:41:46 · 3 answers · asked by artguy90291 2 in Business & Finance ➔ Renting & Real Estate
You need to hire a real estate attorney. You asked this once already. You can't really get your answers on here any better than: Hire an attorney.
2007-03-06 17:53:38 · answer #1 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
many times, the helocs are done by the institution and there is some issue that perevents the recording of the deed or it never gets recorded.
The 2nd mortgagee still has a valid note and is entitel to collect on it. SHould the collections process get more advanced they may consider foreclosing and then do a title search to see what the title situation is. Should they find out that they are not on title, and the deed that they have is able to be recorded, then they can record that and now have a lien.
If this is the case, my advice is not to do the transfer of deed, because no sale took place and you will not have an owner's policy to protect you. Also these transfer and refi deals are scrutinized and the lender may deny it since they will want to look at the previous mortgagor's credit to make sure this is not a "bail out" loan. Just do a sale transaction from her to you so that you have a clean owner's title policy from which to protect yourself later down the line
The owner can get away with not paying off the lien since that will not show up on the title policy, however they could be sued later on down the line for the amount by the lender.
2007-03-07 02:27:52 · answer #2 · answered by Daniel N 2 · 0⤊ 0⤋
That should be determined by the Escrow Officer and the Title Company. If this is a legitimate transaction, you should be purchasing Title Insurance. The Title Company should research this. If you know about the lein, let the Escrow Officer know so that it can be put into the Escrow.
2007-03-07 18:02:54 · answer #3 · answered by Mary M 1 · 0⤊ 0⤋