Selling Your Home ? What Can Go Wrong With Title and Lenders

If you're selling your home, there are going to be difficulties at some point in the transaction. Some problems can't be fixed. It's important to figure out whether yours are fixable or not. Then you can either fix them or move on and find another buyer. If it's priced appropriately, there's a buyer out there for virtually every property.

Title Problems

You get a call from the person searching the title to your property saying your first cousin once removed is shown as having a ten percent interest in the property. I hope you (and not just your lender) have title insurance.

If you don't, perhaps your cousin will sign a "quit claim deed" (or whatever similar term your jurisdiction uses) if her father was paid for his interest long ago, but nothing was recorded to that effect with the land records. If that doesn't work, perhaps your cousin will agree to join in the sale and receive ten percent of the proceeds.

Failing that, you're probably looking at a court proceeding. The sale will fall apart, and you'll have to start all over again once the problem of legal ownership has been resolved. Bummer. Before you put a property on the market, make sure your title is clear.

Lender Objections

Lenders can really punch holes in a home sale. Let's look at a few examples.

Example One

The lender calls and says your garden shed is encroaching on your neighbor's property, while their fence is on yours. The lender won't fund the buyer's loan until everything is moved to where it belongs. Typically, the lender isn't going to back down. What are your options?

If you get along with your neighbor and can do the work yourself (or can afford to have it done), the problem can be quickly cured. I once saw a very creative resolution to this problem. The shed was on a utility right-of-way. The seller got the county to write a letter to the lender saying that if a shed weren't on a poured foundation (it wasn't) and could be moved on notice, then it wasn't considered an encroachment until/unless such a notice was sent.

Example Two

The lender says your property will appraise for the amount needed for the loan so long as the following repairs are made. The list of repairs upsets you. Time to take a deep breath and think. How can you get them taken care of before settlement? Can you do them? Have them done? Would the buyer be willing to help out? Is this a deal to walk away from? Regardless of the answer, the key is to make a logical decision not an emotional one.

Example Three

The lender's appraiser comes in with an appraisal that is below your agreed sales price. The lender is willing to lend based on the appraisal, not the previously agreed price.

There are several options for fixing this problem.

1. You can reduce your price to the appraisal price.

2. If the buyer wants your property enough and has enough money, he can pay a larger down payment and leave the purchase price the same.

3. The two of you can split the difference; you come down some, and he increases his down payment some.

4. Or, sadly, the deal can fall apart over this issue.

The real key to successfully dealing with problems is to stay calm, open minded, flexible, bottom line oriented, and think win/win. Most of the problems that occur do have solutions. We just need to look for them persistently.

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

---

Late Mortgage Payments Sabotage PMI Cancellation

There's something you should know about PMI!Private mortgage insurance is... Read More

Make Your House Earn Its Keep

Did you realise that there is a lot you can... Read More

Empty Nesters Flock To Inner City

Babyboomers whose children have left home, commonly known as "empty-nesters"... Read More

French Property - a Buyers Guide to Purchasing Property in France

The CompromisThis document is the document you will sign agreeing... Read More

I have a buyer for your property and I can sell it now!

A Realtor has just talked to you and said, "I... Read More

Home Inspections or Home Warranty?

Homebuyers are a curious lot. They routinely ask thought-provoking questions.... Read More

Real Estate Value: Knowing yours is Key to Mortgage Success

The value of the real estate you own, whether it... Read More

10 Home Purchase Abroad Tips For Success

Are you seeking your little corner of sun drenched heaven... Read More

According To Sellers, Silence Isnt Always Golden?

When trying to sell a home, silence isn't always golden... Read More

Curb Appeal

First impressions do make a difference when selling your home.... Read More

Real Estate Investing - Protect Your Privacy

An irate tenant or disgruntled home-buyer, with the help of... Read More

For Sale in Ridgefield

Ridgefield Connecticut, located near the New York border, is a... Read More

Reinventing Real Estate, Part 2: Online and Empowered Consumers Are Taking Charge and Paying Less

Demanding consumers"Internet buyers tend to be better informed on market... Read More

Real Estate: Financial Considerations $$$

Raw land as opposed to improved property is much more... Read More

How to Price Your Property?

A house properly priced is half sold. But there are... Read More

Do You Have the Correct Home Buyer Mindset to be Buying a Home?

By learning what you need to know and preparing how... Read More

Buying a Newly-Built Home? Ten Benefits of Using a Real Estate Professional

It might not seem necessary to involve a real estate... Read More

How To Sell A Home That Didnt Sell

If your home has just come off the market and... Read More

Working With Your Real Estate Attorney

Purchasing or selling a home will probably be one of... Read More

Real Estate Financing - Ten Ways

Do you remember when real estate financing meant you saved... Read More

Horses In My Back Yard

Horses In My Back Yard by Jody Hudson, with Extensive... Read More

An Ideal Way to Purchase Your New Home without Strict Banking Regulations

You've searched high and low around town looking for that... Read More

Searching the Hawaii Property Listings

Maui is an island so full of life and vivacity... Read More

The Echo Boomers - The Next Big Consumers

The Echo Boomers or Generation Y currently make up about... Read More

4 Dangers In Flipping Real Estate

If you have recently purchased some real estate for investment... Read More

The Key to Real Estate Investing Success Revealed!

How did you get into real estate investing? Did you... Read More

Setting Goals for Real Estate Success

The power of goal setting has been well documented and... Read More

What?s Your Style? A Guide to America?s Most Common Home Styles

Styles of houses vary across the country. From the New... Read More

How to Become a Successful Real Estate Developer

Real estate investment and development has never been a more... Read More

Pricing your House to Sell

Most Sellers set their initial asking price at an amount... Read More

Content Ideas for Ads and Brochures When Selling Your Home

Even in this hot real estate market, selling your home... Read More

10 Things You Shouldnt Do When Youre Buying a Home

Home Buying Don'tsYour home buying process is well underway. The... Read More

Utah Real Estate

Looking to buy real estate in Utah? The market has... Read More