"owner of record" foreclosure sales contract

[Valerie Anne]

hi: I hope someone else has dealt with this. The 1004 form asks us if the "owner of record is the seller". I'm currently working on a 1004 for a foreclosed property that is listed and is now being sold. The County records indicate the owner is Bank of America. The sales contract says the seller is "owner of record". The "seller" apparently is actually Premiere Assets (or at least that is what the counter offer says). Wells Fargo owns Premiere Assets. I have asked for a copy of the deed that transfered the property to Premiere Assets, and to please identify the seller-signer as being an employee for this company. The listing agent is telling me that in the 3 years she's been selling foreclosures, no other appraiser has asked her to identify the seller. She tells me that all the contracts she has dealt with list the seller as "owner of record".

Seems odd to me. Is this customary? if so, do you know why? What risk am I taking signing off on a 1004 with out being able to verify the seller?

thanks much,
Val

 

[Pamela Crowley (Florida)]

"Owner of Record" is the one your County shows.

 

[jay trotta]

Why can't you use, "Owner of Record" ?

If it's a corporation, who cares ? They're only going to have a "Duly Authorized Agent" sign the Deed anyway.

We have used "Owner of Record" before - don't see the big deal.

 

[Frederick]

hi: The listing agent is telling me that in the 3 years she's been selling foreclosures, no other appraiser has asked her to identify the seller. She tells me that all the contracts she has dealt with list the seller as "owner of record".

Seems odd to me. Is this customary? if so, do you know why? What risk am I taking signing off on a 1004 with out being able to verify the seller?

thanks much,
Val

You will hear this everyday of your career from new home sales people, real estate agents, homeowners etc regardless of what you are asking for. You are a professional, you know what you need to do a credible job. Never let them intimidate you.

Nothing pizzes me off more than to hear this nonsense from these people.

 

[Valerie Anne]

Thank you all for your feedback. I love this forum. It's great to have a place to go for questions.
After reading your replies, I think I'll just check "no" in the answer to the question, and the lender will have to give me more information.

Val

 

[Caterina Platt]

Thank you all for your feedback. I love this forum. It's great to have a place to go for questions.
After reading your replies, I think I'll just check "no" in the answer to the question, and the lender will have to give me more information.

Val

Hi Val,

There's nothing necessarily out of bounds taking place, but it's not a clear cut case where Lender A had the special masters deed in their name, and Lender A is now signing the contract. In the world of REO's and liquidated assets, there will be asset management companies hired to handle the sale and management of the property in the process. Not a big deal, and certainly nothing illegal. HOWEVER, if the owner of record is not the party signing the contract, IMHO the best thing to do is to state so, but provide all the information you do have.

eg. if the appraiser states 'owner of record is Bank of America and the contract is signed by Premier Assets, however no ownership transfer between these two entities is noted in public records'. You have stated the truth, but there is also likely enough information for underwriters, et al to connect the dots without causing problems. They may need to get a clarification in writing from B of A or Premier, but the truth has been told and the paper trail is covered. I know, I know...all they'd have to do is check the contract for themselves, but they aren't always that swift, ya know?

Simply checking 'No' and not giving the rest of the story may end up causing unnecessary delays, appraisal conditions, wringing of hands, contract extensions and other stomach acid for yourself and all the parties involved.

 

[Richard Carlsen]

Read the question: Who is the "Owner of RECORD"

Who is it that has given constructive notice of ownership by recording their rights with the county? The county records say it is Bank of America? OK. Then Bank of America is the owner of record. Even if they sold their rights and the new owner did not record that transfer, the OWNER OF RECORD (i.e. that owner that is recorded with the county) would not change until the new owner recorded his ownership rights.

Re-read your pre-printed Limiting Condition #1 that says you will not be responsible for anything to do with the title.

As to the question of party signing the PA vs the Owner of Record, if the name is not the same or if there is no "by direction", I always answer this question with a NO. They are not the same so I only have one possible answer: NO.

As to answering NO causing delays, etc., the NO answer is the only real answer that one can give. I've done it many times and have never had a lender come back and want it changed. Remember that this deal will not close without title insurance. And they will guarantee the title. The only reason that the lender would question your answer would be if they wanted the appraisal to look like every other document which is just for show. If they say that Bank of America sold their interest to Jack's Lenders Bailout Inc. and want us to show Jack's as the owner, you would need a copy of the recorded transfer in order to do it properly. An agreement between B of A and Jack's will not suffice. The question asks for the Owner of Record and that means what it says: That owner that is recorded with the county.

 

[Valerie Anne]

yes, thanks. I will check "no", but also add in all the information that I have.

 

[Richard Carlsen]

yes, thanks. I will check "no", but also add in all the information that I have.

Valerie (BTW,my daughter's name is Valerie);

Why waste your time? The lender knows what is going on with the title and the loan will not close without there being a proper chain of title. You may note that the property was foreclosed upon with transfer of title to the lender and leave it at that. But you are going to have to fill out a 1004MC form soon and we spend enough time on reports as it is. Just anser the question and leave it at that. I'm not a betting man but in this one, I would be dollars to donuts that nothing would be said.

 

[Mike Boyd]

To clarify, the owner of record is whoever the recorder's office says it is. Like Richard says, it is NOT our job to get involved in legal or title matters. In this case, Premier Assets is more than likely the trustee on the deed of trust and it is THEIR job to resolve these issues.