Cleveland Real Estate News

Just as there were many stories in the Naked City, there are many different types of foreclosure and loan modification and refinance stories covering the last few years …and many of them could make your blood curl.  Here are three examples from CNN Money on foreclosure threats that happened through no actual fault of the home owner.  In all these cases there was some sort of perfect storm going on (for one family, the title company went out of business AFTER they had the family money for the house but BEFORE  they turned it over to the lender.)

How would you feel if you paid your property taxes and found out a bank had paid them instead and you got your money back.  Yeah, at first you’d smile and say cool! Then you’d scratch your head and say, huh?  This is how a family found out that even thought they THOUGHT they bought they house, the money had never gone to the bank.  Oy.

My only suggestion would be this: if you re-finance, if you get a loan modification, if you purchase a home, it seems to be necessary now to check in for the first year or so? Call your lender instead of just getting the payment slips, and find out if your loan account is all kosher and cool.  If you re-financed with a different lender, wait a few months and then call your old lender to make sure your account is satisfied.  Even if you have paperwork telling you the proecess was completed, the title transferred, the old loan got paid off, apparently we now need to follow up. 

And if for some reason you feel the need to get a loan from a huge banks (yes, one of the Too Big To Fail joints), I say call early and often to make sure you’re not getting the fickle finger of fate from them. Finding out there is something wrong a few months later is better than finding out years later  by getting an unjustified foreclosure notice. 

The last point is this.  Title companies can be reputable or not. If you are buying a home and your agent recommends you use one title company or another, don’t be afraid to ask questions: do you own a monetary interest in this title company (sometimes they do).  I always feel comfortable when buyers want to use Howard Hanna’s title company, Barristers of  Ohio.  I also know other title companies that are reputable and have been around a while.  I get nervous when someone comes to me and says they want to use _____  and I’ve not heard of them and it’s a small, or newer title company.  I have ways of checking with my office to see if a company is on a watch or ‘do not use’ list for fear of instability.  But buyers have recourse as well.  Contact the  American Land Title Assn. (ALTA) or visit ALTA’s website.  While you can’t foresee every problem, it’s always good to know that even if something bad DOES happen, you covered as many bases as possible. 

   3C