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Steps to Recall by Mortgage Lenders in Title Search Process

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When a buyer is purchasing a property and needs money through a mortgage then the first thing to be confirmed in such a case is that the property has clear titles with no legal issues. This makes the title search process essential. A title is a collection of rights for a real estate property and the search process would evaluate what are these rights and they belong to which person. This is done to find out if the current title is good with no legal complications and find out if the person selling the property has rights on the property. Finally, the buyer should be receiving all the rights for which he or she is paying the money. The search checks the title records for all things related. These records are public once and include all the written documents.

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The title search is done by an examiner or searcher. The work involves summarizing the information from the title in an abstract form which keeps a record of all the documents in chronological order. This work can be done in house or outsourced to an expert in mortgage processing service provider. The steps involved in such a search for the mortgage solution providers are described below:

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_custom_heading text=”Title Chain” font_container=”tag:h2|font_size:20|text_align:left|color:%23375b05″ google_fonts=”font_family:Lato%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C700%2C700italic%2C900%2C900italic|font_style:400%20italic%3A400%3Aitalic”][/vc_column][vc_column width=”1/2″][vc_custom_heading text=”Tax Search” font_container=”tag:h3|font_size:20|text_align:left|color:%23375b05″ google_fonts=”font_family:Lato%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C700%2C700italic%2C900%2C900italic|font_style:400%20italic%3A400%3Aitalic”][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text]

The title chain can be described as the list of transfers of title for a particular property. The list shows from the present owner to the original owner and this can be obtained from the registrar’s office. These searches are often time-consuming and due to the complexity involved its beneficial to outsource this work to the mortgage services provider.

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The second step in the process is a tax search. This search states the taxes which are against the property and at the same time gives the status too. The taxes are paid or unpaid and if any overdue charges are associated with it if unpaid. This search will determine if any title insurance is required or not as taking one will protect the lender from any loss from the unpaid taxes.

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A site inspection is a must and should be ordered if not done. The person who would inspect needs to submit a report to show if any encroachment or other issues are present. The inspector will check the size of the property and confirm with the details mentioned in the documents. Also, if it is occupied or vacant. If any evidence of some issue affecting the title is noted, then it is submitted in the report. The purpose of the inspection is to let the mortgage lenders extract all the information related to the property.

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it is important to check if any unsatisfied judgment is present as if it is present, they are a defect in the title. A judgment could be a general lien against the property. Such judgments should be noted and then removed by the seller of the property before the title is sent for transfer.

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As the lender with the buyer and seller of the property there should be a completion of all the transactions once the defects relate to the property title are cleared which are missed in the search. Once this is done then the mortgage process can be started.

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By following above-mentioned steps, it can be ensured that the title is clear of any defects or claims and the mortgage lender can process the deal.

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