Wow. Nothing amazes me more than people who are in the real estate profession everyday, and know less than I do about stuff. So, I finally got a call back from the title agency I called the other day. I had asked three detailed questions, and the lady answered all three. Here is basically what I asked and the response I got from the lady at the title company, who was forwarding the answers from her "veteran" closer:
Q: Does your company do double-closings?
A: Yes. Just make sure all the paperwork is squared away before hand, etc., etc.,
Q: Does your company handle closings with seller financing involved, and what documents will you need from me and my buyer?
A: Yes, we do closings involving seller financing. She wasn't sure what documents I was talking about, though, so that answer is still in limbo.
But the kicker was my third question ...
Q: Does your company handle closings where the buyer is taking the property subject-to the existing financing? Keep in mind, when I asked this question, I had to explain the difference between "subject-to" and "assumption".
A: No, we don't do those types of closings. In fact, those types of transactions are illegal in the state of Texas. Huh?!?! I didn't say anything after that point except "Thank you for getting back to me."
Okay, not only are subject-to deals NOT illegal in the state of Texas (or any other state, that I know of), but they happen all the time - every day. There is even a line on the HUD-1 settlement statement specifically dealing with subject-to financing (Line #503, I believe). Now, the lender CAN call a loan taken Sub2 due at their descretion, but there is ABSOLUTELY NOTHING ILLEGAL ABOUT IT.
The lady asked if I'd like to come ina talk face-to-face with them further to which I said 'yes', but that 'I would call them'. Ugh.
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3 comments:
castle - I hear ya. I've run into several "professionals" in this business that haven't a clue on things you'd think they were experts on. It fathoms me, but I guess it shouldn't.
bginvestor - Yeah, I think it's my subconscience telling me to stay in my comfort zone again. All I need is for the seller to sign a few docs, get the deed notarized and filed, and be done. The ONLY time I should visit a title company is to have them do a formal search if I have an uneasy feeling about a title. Thanks for the morale boost!
sub2 deals are not illegal (yet) there is serious legislation that will impact real estate investing...
what they DO want to make illegal and from what i understand, is already illegal in texas are lease options... you may want to read up a little bit more. As I'm not entirely sure.
I'm not surprised at all. It's shocking what goes on with people who are supposed to know their way around a real estate transaction.
I'm in Texas as well and am shocked at what goes on.
There is a website detailing Texas Real Estate Commission problems called www.texasrealestatecomplaints.com that has some links to enforcment issues.
I wasn't sure if you allowed links on your blog, so I apologize in advance if you dont.
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