Owner of record vs. seller

[Jack Ashworth]

With more and more foreclosed properties finally starting to sell, I have started encountering a problem with checking "no" on the box on page 1 that asks if the seller is the owner of record. There seem to be lots of middle men acting as brokers to sell of bank owned properties in the area here, but the public record will list Bank A as the owner of record, and the contract is signed by Company B, a residential lending company (or some variant of that). I have combed through the contracts and nowhere can I find anything that indicates Compay B is selling this property on behalf of Bank A.

I feel that I therefore need to check the box NO that the seller is NOT the owner of record (nor do I have any documentation linking any sort of business relationship between the companies). The lenders I am submitting these appraisals to are coming unglued, saying that I HAVE to check yes, or the loan will not go through. I have been asking for some sort of document to put in my workfile establishing a linkage between the seller and the owner, then I could make a comment in the section. Without fail, every bank that I get into this debate with ends up saying "we don't have this problem with any other appraisers"- do we just all check that box automatically in the template and then forget about it? Am I being unnecessarily picky here, or is there some obvious solution that I am just missing?

Thanks in advance for any advice.
Regards, Jack

 

[Paul Isolda]

We are not title searchers. If there has been some very recent change in title, we need to be told so we can go search it. I do not check the most recent transfers as a matter of course, only it there is a reason to do so. In a case where I am not seeing the owner of record as the seller listed in the contract, I would probably check the most recent records, in the town clerks office in my area, to see if there was a recent transfer not recorded yet by the assessor. If I cannot find the name in the town records that matches what the contract says then the answer to the question is no. It is then up to the client to provide me documentation. If they will not then I think something funny is going on. At that point, not my problem.

 

[Craig Villa]

Jack,
I recently received a similar response from a client wherein the end user (bank) was requesting specific nomenclature and reasoning be utilized as it “fit their underwriting guidelines”. When I responded that the current market would not allow the request to be satisfied, I was told that I would no longer receive work for questioning the authority of the bank. Back in late 2006, I was told that the lender would not accept reports with the “declining” box checked. I’ll bet they wish they had not said that now.

 

[Mztk1]

I don't know about your territory, but here we have the Clerk of the Court on line and the deed transfers are usually posted within a few days. If there is a discrepancy between owner and seller I will search the owner's name at the clerk's office and see if they sold recently. Usually they have.

Also, if there wasn't a transfer, make sure you, pull the deed when possible. A lot of companies use a trustee to hold and sell. Countrywide, for instance, may be on the contract as the owner but public record says Deustche Bank, NA. Not a match. But if you look at the deed it will say Deustche Bank, NA as trustee for Countrywide. It happens with a good number of my foreclosure sales but it has never ended up the case, for me, that the owner and seller were not the same.

 

[Terrel L. Shields]

then I could make a comment in the section. Without fail, every bank that I get into this debate with ends up saying "we don't have this problem with any other appraisers"-

I place the name that is on the tax card and the tax card is usually scanned into my report for any sec. market. If they want to threaten me, I simply state that they need to write me a letter explaining who is the "owner of record" if not what the record actually says, and I wil put it in the report and leave that section blank. The fact is the "owner of record" is exactly that, never mind the machinations of the client and if I hurt their little feelings. I will put what fannie says to put...
Like this record (no dates)
Banta to Banta
Banta to Deutsche Bank
Deutchhe Bank to Cook...
Seller on contract Nat Hm Servc

I don't see why it wouldn't be sufficient to say that Nat Hm is a servicing agency for DB...all they gotta do is connect the dots for me..otherwise, not my job.

 

[Richard Carlsen]

You can do one of two things as I see it:

#1 Put the owner of record from the official records available along with a SnagIt copy of the record pasted into your addendum as documentation; then lock the binders and refuse to change anything (possibly foregoing any future business) or

#2 Put the owner of record the client wants into the report and add a statement something like this in the report addendum: At the specific request and instructions of the client, the name of the owner of record provided by the client has been entered into the appropriate space in this report. This name does not agree with available public records available to the author at the time of research. However, public records may not be up to date. It is therefore assumed that the name provided by the client is correct, being the result of current title search. An error in naming the current owner of record has no effect on the subject's value.

Quite frankly, I don't see this as a big deal and have never understood why the appraiser should have to get into the seller being the same as the owner of record when the lender can just as easily look at the PA and the title work and make that determination himself.

 

[AnonApprsr]

I always note the owner as in current public records on pg1. But I look up the foreclosure notice via deeds, and note who is foreclosing on who, and I look at the P&S and note who is selling to who etc. Never had a client give me an issue.

 

[Mike Boyd]

If there is a question of current ownership, call the title co. and ask them for a copy of the preliminary title report.

 

[Richard Carlsen]

If there is a question of current ownership, call the title co. and ask them for a copy of the preliminary title report.

I would ask the client rather than call the title company. They have confidentiality requirements also. In fact, it is the clients requirement to provide a legal description. Most often, that comes from the tax records or the preliminary title work.

My objection is that it is up to us to "prove" that the name inserted in the report is correct. I snag the official public records and paste them into the addendum. anything else entered will require a comment such as I commented on above.

Here's a random property with my notations on it that I put in the addendum.