Question:

Subject: Title Search

What type of title search do I need for a home that was left to stepmom who had a life estate and took out a loan on the home. There is a balance due of approx $52K. She died last year and the fathers will stated that it goes to his two sons when she dies. How could she even get a loan on a life estate?

Thanks,

Sheri

Answer: 

Sheri,

Thank you for your inquiry.

If I understand correctly, the stepmother who has passed away had a life estate and the Father was the remainderman? Or the Father’s two sons? In general and depending on the laws of the subject state, a life estate owner may be able to secure a loan with the remainderman’s agreement.

Please clarify the facts surrounding the circumstances so that we can lead you in the appropriate direction.

Thank you,

Jeannie B.

Client response:

Hi Jeannie,

Thank you for your response. Yes the Father’s two sons are the remaindermen. The stepmom died in 2017 and the father died in 1975. Stepmom had a life estate in the home and somehow was able to take out an equity loan in 1998. There was only one surviving remainderman at that time. He says he did not sign for any loan.

One of the remaindermen died in 1997. He has 3 adult heirs. The other remainderman is still living, has never been married and is the administrator of his brothers estate. The estate has been sitting in Probate since 1998. A lawyer has advised him to wait until the loan company forecloses on the home to do anything. This can take a long time, in some cases, and the home sits vacant, taxes due, etc. and no resolution to who is the rightful owner.

This is getting real complicated I know, but any help would be appreciated.

Will a title search show how the loan was taken out and who were the signers on it? This property is located in Texas.

Sheri,

Answer:

Sheri,

You mentioned that the property has been part of a probate since 1998, but the life estate owner died in 2017. Is that accurate? Usually the property would transfer to the remaindermen upon the death of the life estate owner (in this case 2017) without the need for probate. So are you saying that the property became part of the brother’s probate because he was a remainderman and there was a loan on the property?

The expanded title search will provide you with loan information but not loan documents. However, you may be able to identify the company and contact them directly to obtain a copy of the loan documents if that is necessary. I do not know how the stepmother could have taken out a loan in 1998 without the permission of the remaindermen, but perhaps a review of the loan documents will give us more clues. Has the attorney who advised waiting until the lender forecloses tried to sort out the title issues or look into how the loan was issued without the remaindermen’s approval?

FYI, the expanded title search detail is as follows:

Expanded Title Search

(Preliminary Title Search)
Includes a 10 – 30 year title search and transfer history (grantor/grantee) depending on the county.
Property lien report (Involuntary and voluntary liens, Lis pendens, judgments) filed against the subject property
Property valuation report (property valuation by comparable sales)
Full property detail report
Individual profile report
Transaction history: transfers with prior mortgage and sale information
1st and 2nd mortgages with lines of credit opened for subject property
Complimentary copy of current deed (if deed image is available online)
Assignments, liens, UCC and Judgments
Foreclosure activity report (if applicable)
Neighborhood demographic and statistics report
Parcel, zoning and flood maps
Lien and mortgage releases
Legal and vesting report (contains property’s legal and vesting with Easement Appurtenant detail, if recorded) Utility Easement searches are separate searches, pricing varies per county. Please contact customer support for a quote through the contact page of the site.
Legal name, nicknames & aliases
Last reported address(es) & previous addresses
Last reported phone number
Last reported employment and/or business ownership, if any
Associates/relatives/neighbors
Personal asset report (real estate and vehicles owned within the United States)
Bankruptcy search (and filing information, if bankruptcy was filed)
Judgments and criminal/court records

I look forward to hearing from you.

Thank you,

Jeannie B.

Client reply: 

Hi Jeannie,
Oh boy I think I may have purchased the wrong search 😞 I will make a long story short lol
I just found out this past weekend that my husband and I were apparently sued by a apartment complex we lived at approximately 10-12yrs ago (which I moved out 1st) apparently it went to a collection agency years ago, my husband told me that he was served at work i guess in or around 2008 – 2009 well he said both of our names where listed on the complaint as defendants just defendant 1- xxxxxx xxxxxx, defendant 2 a xxxx xxxxxx. Well he was the only one who was served with anything and I knew NOTHING about it EVER til now 😡😡😡😡 well he said he defaulted never went to court. But when I search him and I in county public records I come up with nothing he comes up with multiple but nothing from that collection agency but when I search Justice Court Records website it shows there listed as closed but has the judgement only on him so I am trying to buy a house which he is signing a quit claim deed but I wanted to see if anything from this is going to pop up when I go to close 😒😒 can you help me?

Answer:

Hi Tina,

There is no added fee. The amount you paid is for our time to obtain/prepare the information/report you ordered, answer any questions you may have and/or assist with an issue resolution process. Your request is considered an issue resolution request.

Pages 9-10 of the profile report reflect three legal actions to obtain judgments. The report does not always include the disposition of the matter(s) depending on the state and the way they report the information. Unfortunately, it is not uncommon for plaintiffs to obtain default judgments. Motions for alternate service such as service by publication in a newspaper for a period of weeks are frequently granted by the courts where the plaintiff shows that personal service was attempted multiple times and every effort was made to serve the defendant personally. Sometimes they submit supporting affidavits from the process server who attempted service reporting that the defendant was intentionally evading service. In any event, it is not uncommon although it can be frustrating and feel unfair to a defendant who wasn’t evading service but was served via publication in a newspaper they never read.

With respect to your reference to the recorder’s office, if a judgment or other legal document is not recorded by the judgment holder, you will not find it at the recorder’s office or in their database. It appears from our review of the Clark County Justice Court site that the lawsuit filed against you and Timothy in 2009 by Clark County Collection Services, LLC resulted in a judgment against Timothy only. Both matters in Clark County Justice Court have been closed, but that does not mean that the judgment against Timothy has been satisfied, expired or otherwise resolved. You mentioned that you are trying to buy a house and that Timothy is signing a quit-claim deed. What is he quit-claiming and to whom?

Please clarify your exact concerns. Are you concerned that an unsatisfied judgment will affect your right to take title to a property or are you concerned that you will not qualify for a mortgage loan? Is your purchase transaction pending? If yes, have you opened escrow with a title company?

We look forward to hearing from you.

Jeannie B.
Client Services

Client reply:

Yes I’m concerned that when we get to closing and the title company runs my identity and looks for any judgments or liens that that is going to come up and I’m going to either not be able to close with out paying that or being at that point denied the loan if I’m unable to get title insurance my loan was applied using only my information none of his we are actually not officially together anymore just good friends so I thought lol so I’m just really worried that this stuff is going to come up when they look at public records and I’m going to have to pay money that has nothing to do with me 😒😒 but my name is on it sooo IDK.

Answer: 

Tina,

I see so he is not signing a quit-claim deed transferring the title to you? You are trying to obtain a new loan to buy it from him?

Thank you,

Jeannie B.
Client Services

Tina,

No, those three items showed up under judgments/liens on your report because you were married or otherwise connected to the person who may or may not have the judgment (or once did). The reason for this is because, depending on the state and circumstances, a spouse may be liable for his/her spouse’s debt.

So it doesn’t necessarily mean that you have current judgments/liens today. We are an online records & research service company and the reports compiled from public records are meant to be used as the starting point for research. I am still confused about the mortgage company suggesting Timothy quit-claim the property to you. In order to do that, he would have to own it first, so are you saying you would buy it together first or does he already own it? Please clarify that part and I will look into it further for you.

Thank you,

Client response:

So if I am reading that report right it shows i have 3 judgements against me? 2 showing eviction and 1 civil from Summerhill Pointe?
So if that is true how come when I search Recorded Records In Clark County it comes up with just my divorce records from the 90″s?
and doing that same search of course Tim comes up with many under the “search from Leins” tab?

I am sooo confussed I just wanted to know if I am gonna come back with any active leins or judgements that perhaps is gonna cripple this process 😞

Tina

Answer: 

Tina,

No, those three items showed up under judgments/liens on your report because you were married or otherwise connected to the person who may or may not have the judgment (or once did). The reason for this is because, depending on the state and circumstances, a spouse may be liable for his/her spouse’s debt.

So it doesn’t necessarily mean that you have current judgments/liens today. We are an online records & research service company and the reports compiled from public records are meant to be used as the starting point for research. I am still confused about the mortgage company suggesting Timothy quit-claim the property to you. In order to do that, he would have to own it first, so are you saying you would buy it together first or does he already own it? Please clarify that part and I will look into it further for you.

Thank you,

Jeannie
Customer support team
U.S. Title Records