Title issue with a HUD home?
I was told there is a title issue with a HUD home I am looking to purchase. It fell under the Bank of American robosign scandal, and it is listed on tax records as being owned by Bank of America; however, when it came on the market it was listed with HUD. I understand that a "title issue" could mean a long list of title problems, but I didn't know if it was possible that the title issue could be that the title has not been transferred to HUD from Bank of America? Any advice is appreciated!!
- linkus86Lv 76 years ago
Title issues can be small, and it sounds like this one is. A HUD house can't be a HUD home unless the home is owned by HUD. The fact that it is being sold by HUD with a title issue is pointing out that difference. But regardless any title issues are up to the seller to fix before the title to can pass, thus it is easy to assume title will pass prior to closing. And regardless of the house you buy, it is always a good idea to buy title insurance.
- wizjpLv 76 years ago
The tax records don't mean a lot. They ofter are as much as 6 months behind the current owner deed status. And that would be easily fixed by requiring a deed from BOA to HUD; Or for BOA and HUD to join in the deed.
Odds are a WHOLE Lot greater that someone in the foreclosure chain failed to receive proper notice of the foreclosure; or a creditor like IRS did not get proper notice.Source(s): Land title agent. I search property for underwriting
- Glenn SLv 76 years ago
Shouldn't be a problem.....The title company will write around the issue and give you title insurance. The title company knows that HUD and/or BofA will provide a clear title.
I've seen this happen many times.