Managing a listing
First step in managing new listing is to assess the salability of a home.
Why? As a professional agent, you should know if there are any encumbrances (obstructions) on the title. Some encumbrances can significantly slow down, or impede the transfer of ownership. You want to save yourself, and your client the investment of marketing a home that needs clearing of title, first. Do not assume that owners are aware of encumbrances. It is a good investment of your time, to find encumbrances and determine if they are fixable. The following is a list of possible encumbrances to look for.
(Note the first items pertain to mortgages. You should ask for copy of last statements. Any balances the owner does not give you will be found by title company. But, save yourself time, ask them point blank, what are all the collateral loans on this property? If they tell you they filed bankruptcy, let them know it does not erase the loans off the property. Note the 3rd
and 4th items are easily obtained by calling the HOA for payoff, and title for city account status. The 5th, 6th, and 7th items are usually on the county websites. The last items are not found out until the seller discloses them. Or, they are found after the title company does a title search and produces the preliminary report.)
1. High mortgage balance. This would create a short sale situation
2. Second, third mortgages, collateral loans, lines of credit where the property
was used as collateral . Same as high first mortgages, they can create
a short sale situation.
3. Derogatory HOA accounts. Is the HOA current? Get the payoff. A few
months late is usually not a problem. But, high payoffs, or looming
foreclosures need to be addressed.
4. Is the trash, sewer, water reclamation account current? Most title
companies will gladly give you the status, over the phone.
5. Notice of Defaults. If the foreclosure process has started, you must contact
the trustee. You should know if you have enough time to complete a sale.
If not, try asking for time. Note this applies to tax liens, HOA liens, etc. as
well as mortgagor foreclosures. A true professional is aware of all statuses.
You can find recorded liens, foreclosure filings in the Clark County
Recorders Office Website. http://www.clarkcountynv.gov/recorder.
6. Are the SID/ LID accounts associated with the property? You can find
balances on internet at http://amgnv.com/parcelsearch_non_pop1.asp . Or,
search http://www.clarkcountynv.gov/Depts/treasurer/Pages/default.aspx .
7. Does anyone else have claim to the property? Check the assessors
website for ownership history. And, check for possible partners.
http://www.clarkcountynv.gov/depts/assessor/pages/default.aspx
8. Does the home involve ex-spouses with unresolved divorce disputes,
Lis Pendens? Did the home belong to a deceased person. Did probate
court authorize a transfer? These issues are not readily found.
Usually, these issues are found by the title company. But, you can ask in
a friendly way, when listing is taken. Let people know you just want to be
able to give them an honest estimate on projecting closing dates, and
closing costs. And, that your intent is to give them a smooth closing
process. An honest seller will appreciate your thorough assessment of the
property. If these problems exist, you and your client call plan the best
way to proceed, in an honest, and realistic way.
Remember, these encumbrances do no mean they can not sell their home.
It simply means, the issues need to be cleared, for their convenience,
before the sale. Being honest will help you, help them achieve a smooth
transaction. Better to address the issues before escrow, rather than having
to ask for extension, after extension.
12. Did seller acquire the property with a Grant Deed and Bargain, and
proper title insurance. Or, did the seller acquire the property without title
insurance. If the current seller acquired the property without prop
notarizing, and/or title insurance, the title company may or may not ask the
old seller to re-sign documents. This is sometimes the case with quit
claims. Title company will instruct you how to proceed. It will be a case
by case situation.
This research typically is for private owner sales. HUD homes, Habitat for Humanity, City Rehab properties, and REO homes usually have had the title already cleared and ready for sale.
