REO Sale, last deed didn't get recorded

[Tim Schneider]

Working on a sale for a REO home owned by a small bank. The bank got the property back by a quit claim deed in leiu of forclosure in Sept 2009. The problem is they never recorded the deed. So now when I went to the courthouse to research the ownership, it still shows the prior owner as the legal owner.

What I am supposed to do now? Report the ownership as per county recors and let the title company sort it out? If I did that, I would have to check "no" in the "is the seller the owner of public record". I talked to the bank that "owns" the property, and they are going to get the deed recorded tooday, effective date is 5/3. What a mess. Any advice would be great.

 

[Paul Isolda]

Deeds do not have to be filed to convey title. It makes everyones life easier when they are, but they don't have to be. As the client to provide evidence of current ownership and discuss the situation in the report.

 

[tmh1982]

I could be wrong on this, but a deed does in fact have to be recorded in public records in order to claim ownership. If this were not the case the first owner could sell the property multiple times to other parties until one party finally recorded their name as the new owner. Probably best left up to the title company! It is always a good idea to ensure that the record was correctly filed. The deed shows ownership to the property and is what is used for the mailing address by the local offices for taxes.

 

[Couch Potato]

Deeds do not have to be filed to convey title. It makes everyones life easier when they are, but they don't have to be. As the client to provide evidence of current ownership and discuss the situation in the report.

Maybe not in your state, but it does need to be recorded here in North Carolina.

 

[Walter Kirk]

In some states deeds MUST be recorded. In other states recorded deeds are given more credability than unrecorded deeds. In this case you know that there is an unrecorded deed, simply state the facts as you know them in a brief note or addendum.

 

[Webbed Feet]

Deeds do not have to be filed to convey title. It makes everyones life easier when they are, but they don't have to be. As the client to provide evidence of current ownership and discuss the situation in the report.

<....snip.....> "is the seller the owner of public record". <....snip.....> .

Thought I would increase the font size for you.... and then underline the operative words. The question is not is the seller the owner in private records.

 

[residentialguy]

I've run into this a number of times. I report what I know.

I put what the PA states as the homeowner in page one with a "*" by it.

On the extended comments under OWNER OF PUBLIC RECORD, I state:
OWNER OF PUBLIC RECORD:
The County records show JOE HOMEOWNER as the current property owner. The listing and the purchase agreement indicate that this property has recently gone through foreclosure with a Sheriff's sale and is now lender owned with the seller and property owner as MR SMALL LENDER. Delays in updating County records are typical for REO properties. Any further investigation on legal ownership of the property is left to Lender's discretion and title work.

EDITED added: Under contract, I put what the PA states and put down *see addtl comments - then I repeat the same type of blurb stated in the OWNER OF PUBLIC RECORD

(obviously I try to get title work and sheriff sale evidence)