Title FAQ’s and Best Practices
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Transcript of Title FAQ’s and Best Practices
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TITLE FAQ’S AND BEST PRACTICES
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WHERE TO FIND BASIC INFO ON A TITLE
Some lenders require new loan amount
on title to match our request amount
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Note the effective
date under
Schedule A
SCHEDULE A
When a lender asks for a revised date on title, sometimes they are also referring to the effective date as well as the date listed on the first page of title. 3/33
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SCHEDULE ASchedule A of the Title will general pertain to the new
loan (Refi)-This section will also show how the client will be referenced on the new loan-Who will actually be listed on the new loan (see highlighted section)
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SCHEDULE BOn most titles, Schedule B will
contain the information pertaining to the liens already associated
with the subject property
Item 3 shows the current first mortgage and item 4 shows the second mortgage. These liens should directly correlate to the liens listed in AMP
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VERIFYING LIENS ON TITLE W/ LIENS IN AMP
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CONFIRMING SUBJECT PROPERTY
We need to make sure that we are looking at the subject property. See the RED above and make sure that it says YES under subject property
We have now successfully verified that there are two liens on the title and two
liens listed on AMP! 7/33
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LEGAL DESCRIPTIONAll titles will contain a Legal Description of the property. It can be on a separate page as shown above. With the legal description there is also information regarding the property’s Tax ID# (also sometimes called Parcel#), County and State
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DETERMINING A LIEN’S POSITION
Q:A:
How is a lien position determined?Lien position is determined by the recording date for the mortgage.
Whichever RECORDED date came first is the one who holds the
higher lien position
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ADDITIONAL VERBIAGE UNDER LIENSIn this example, the lien listed as #3 would be in 1st lien position due to its recorded date compared to the recorded date of item #4. But the highlighted verbiage listed under #3 states that this lien was previously subordinatedItem #4= 1st
lienItem#3= 2nd
lien(already subbed) 10/33
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MODIFICATION VERBIAGEIn this example, we see additional verbiage under the lien. This refers to a modification that was done to this loan either reducing or increasing the lien amount
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ASSIGNMENT VERBIAGEIn this example, we see that the loan traded hands from one lender to another (called an assignment). The loan originated with MERS as nominee for Suntrust Mortgage, but through assignment is now held by Suntrust Mortgage, Inc.
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IF ITS NOT A TITLEMost times we have a pretty Title Source title as listed in the examples above, but we do use other title companies so here are a few examples of what liens will look like on other titles…
ATLA Titles: Liens will still be under Schedule B
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Fidelity Title:
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Texas Titles: The lone star state has to be different; Texas titles will show the lien information under Schedule C
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Buffalo Titles:
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JUDGMENTS AND FINANCING STATEMENTSThese are also considered liens and will show on
title as…Financing Statement/UCC Statement:
Another example:
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UCC STATEMENTS/JUDGMENTSUCC statements need to be counted as liens and should also be listed in AMP under REO. This is unless there are notes stating that the liens will be paid off.
Judgments: EffectiveThis is an
example of a judgment on title. The TSI tracking in AMP will let us know if this lien is to be paid off or if it
will be subbed.
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EFFECTIVE 4/23/13
Q:A:
What should I do if I come across a judgment?Put in notes that we cannot sub a judgment and mark the sub tracking item “Problem Pending Review” and ALSO send an email to Sub UW Requests so that they can take a look and make the appropriate changes to the loan
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