Welcome to Abstract Thoughts, the official blog of Capital Title Insurance Agency, headquartered in Southfield, MI.
The contributors to Abstract
Thoughts are part of the team of Title Experts at Capital Title. We have been serving the
industry’s title and escrow needs since 1975 and are one of the largest
title agencies in Michigan. It is Capital Title’s mission to be the number
one title company in quality and service.
In the real estate world, the term abstract refers to a summary of public records relating to the ownership to a particular piece of land. Title insurance can also be difficult to understand. It is the mission of Abstract Thoughts to:
- simplify title insurance for buyers and sellers, and
- provide valuable information for industry colleagues.
If you have a question about Abstract Thoughts
Help please. I'm selling my house during the redemption period after foreclosure sale. The buyer's appraiser says that Fannie Mae is the owner of the house and refuses to put our name in the appraisal as the owners. We still have time in the redemption and we have a contract for sale. Is the appraiser correct??
ReplyDeleteWhat city is the property located in?
DeleteCommerce twp
DeleteBoth you and the appraiser are correct. You both have an interest in the property. It depends on how one defines “owner”.
DeleteYou remain what is known as the "equitable owner". You live on the property. You can paint, replace carpet... all the rights that are attendant to possession of the house and what most would define as ownership.
The bank also has an interest of record in the property. However, the bank's record ownership is subject to "defeasance", which means you can eliminate their interest by paying them the redemption amount. Failure to redeem will eliminate your interest, but you are in control of the outcome.
We suggest that you check your title commitment. You are either listed on Schedule A under Fee Simple and Fannie Mae is listed on Schedule B – Section 1 as having interest, or vice versa. Either way is correct. If you are listed on Schedule A, show that to the appraiser and request a change on the appraisal. If you are listed on Schedule B – Section 1, request the appraiser to list both you and Fannie Mae as owners. If the appraiser requires the owner to be shown on Schedule A, you can ask the title company if they would be willing change how they show Fannie Mae’s interest.
We have submitted this inquiry to our affiliated mortgage company and will share their response on this forum as well.
From an Appraiser:
DeleteAppraisers typically use the owner of record shown by the Assessor or the Recorder in the local jurisdiction. Local public records often lag behind events, though, depending on how often they’re updated. So if a lender sends the preliminary title report – or some other official documentation – that shows a more current owner of record, most Appraisers will change their reports to match the title work.
If we can be of more service, please let us know.