Hello all! I currently have a deal in Escrow that has been delayed due to a previous loan on the property that wasn't properly released. The current owner obtained a loan from a husband and wife when he first bought the property. When the loan was paid off, only the wife signed the release. They title company is stating that they must find the husband to get his written release as well. My seller informed me that the husband has left the country over 7 years ago and it will be practically impossible to locate him. Is this deal long gone?! Is there possibly another avenue of completion that the title company can take to secure a clear release and ultimately a clear title? Thanks in advance!!!
You can forego title insurance and take title to the property. Upon ownership you can file a Quiet Title suit against the mortgagee. Once that is done you can then go back and pursue a title insurance policy. The only reason this is not closing is because the title company will not insure title with that defect on the release. The issue doesn't mean you can not buy the property though, just means they won't insure title.
probably not a doable scenario for the average wholesale deal..
what you can do is extend your close with sellers cooperation and you foot the bill for the legal fee's then when title Is clear you close. I do this often.. its risk money the QT I have done in SC cost about 5 Gs and take 1 to 2 years.
Google is your friend. Just because someone has left the country does not mean that they can't be found. Get the name and previous address or country/city and you'll be surprised how often you can find people on facebook or on other websites.
Hire a language student for a couple of hours, who speaks the language of the husband, if English isn't his original language, and have them search in that language.
Thanks for the feedback everyone!!!
Turn lemons into lemonade!
Seller has a problem. In fact, it's a big problem, at least for them.
You can buy with title insurance letting the lien remain as an exception for now. You might be able to bond around it. You can give the seller a note that wraps the problem lien and deduct the cost of curing from the equity of the note that you're giving them. I can go on and on (if Bill Gulley doesn' find fault in my logic).
Point is, risk reversal is fun and profitable.
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