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.

---

How To Sell A Home That Didnt Sell

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

Real Estate Investing and Home Ownership

If you already own your home, you will probably make... Read More

The Echo Boomers - The Next Big Consumers

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

Five Ps of Selling Houses

1. Planning:Know Your Target BuyersThink about your neighborhood and the... Read More

You Wanna Get High With Me?

Being a home inspector is great. It's fun, it's interesting,... Read More

Follow-Up - The Key To Successful Closings

If everyone always did everything they said they'd do, we'd... Read More

Buying and Selling Real Estate: Negotiating to Win-Win

You don't get what you deserve - you get what... Read More

Should You Buy Hud Homes?

Buy HUD homes are sometimes the cheapest option available for... Read More

The 5 Biggest Mistakes Made When Getting A Business Appraised

Most business owners will, at some point, want or need... Read More

10 ?No Money Down? Ways to Buy Real Estate

Turn the Television on any Sunday morning and you'll find... Read More

A Difference Between Appraisal, Assessment, Home Inspection

Every one should have a home inspection before purchasing any... Read More

Property Investing Secrets 8

Property Investing: A Buyer's Secret Weapon When Purchasing Real EstateMy... Read More

Buying Land For Development Requires Careful Planning and Execution

From the desk of Colm Dillon ... Author "Residential Development... Read More

Seven Questions You Should Ask When Buying a Condo Hotel Unit

You may have heard all the buzz about the newest... Read More

Investing In Real Estate Investors

With the never-ending changes in our Real Estate Markets real... Read More

How To Simplify Your Real Estate Buying/Selling Experience

Today's real estate consumer has a lot to consider during... Read More

Secrets of Making Money from Real Estate - Part 5

Where to from here:One property is great, but It wont... Read More

Customer Service ? The Real Estate Revolution

Traditionally, real estate has been viewed as a sales industry.... Read More

Ten Steps for Becoming a Successful Real Estate Investor

The secret to success in real estate investment is finding... Read More

How to Own a Dream Home in Spain

Every year hundreds of thousands of foreign visitors travel to... Read More

Spain Excellent Choice for British SIPP Investors

Second homes in favourite holiday destinations such as Spain are... Read More

Buying Real Estate Thats Not For Sale

Buying real estate can start with a look in the... Read More

Home Selection Checklist - A Good Aid When Choosing a Home

This home selection checklist is a tool to help you... Read More

Commercial Real Estate: Assessing The Unique Features Of Commercial Real Estate Parcels

As commercial real estate development progresses into the 21st century,... Read More

Russ Whitney and Real Estate Investing Gurus

There is curently a huge real Estate boom in America... Read More

Should You Buy Real Estate Now

I have been seeing the market on fire for a... Read More

Afford A Dream Home In Belize

Shopping for property in Belize is not as simple an... Read More

Things To Consider Before Buying a Condo Hotel or Resort Residence

Resort home ownership, such as condo hotels and fractional shares... Read More

Successful Property Letting And Management

Successful Property Letting And Management is not something that just... Read More

Real Estate Lease Option Danger

Why are real estate investors having so much success offering... Read More

Questions Investors Should Ask When Buying and Selling Investment Property

If you're a real estate investor, here are several questions... Read More

The UK has Gone Property TV Show Crazy!

The UK has gone property TV crazy. There are now... Read More

How to Sell Your Home Without a Real Estate Agent

Considering the rapid rise in home prices over the past... Read More