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Peggy Magnanelli

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the saga of selling Bank owned properties

09-23-08
Peggy Magnanelli

In my market we like everywhere else, are flooded with Short Sales and Bank Owned properties. All my buyer clients want a geed deal. I have had so many different experiences with the bank owned properties lately. I've done 4 recently and each one has had it's challenges. If you get a good listing agent who does everything the right way you have a really good chance of settling on time. But even if the listing agent is good then you sometimes have to deal with the bank's title company. So far those have been a nightmare.

The first one I did this year had an out of state attorney's office. They didn't pay the taxes correctly and for some reason the utilities were taken out of my client's name. then he started getting notices from the county saying that he was going to have to pay a full years taxes asap because they weren't done correctly and had been sent back to the title company. Then trying to talk to someone at the title company to get it resolved was very difficult. It took almost 3 months to resolve the situation and a threat from my client to sue the title company.

The next one unfortunately dealt with Indy Mac Bank, right after the FDIC took over. Had the title company actually done its job when they got the file there would have been no problem. But they waited til a week before settlement to start on the file. What a mess that was. We were pushed back a month and they didn't order a house location survey. Which we didn't find out til settlement. Now the new home owners have to have one done so they can put up a fence.

The 2 that I have done where I used my favorite title attorney's have both gone smoothly and settled on time. So my advice to anyone out there who is selling Bank owned properties, even though the banks will pay for your clients Owners title insurance if you use their title company it may be better to use a local company that you are familiar with.

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