Hidden Home Buying Red Flags in Escrow & How to Avoid Them
When it comes to home buying or selling red flags can be a warning, a sign of potential concerns. Other than issues of property inspections, loan and qualifying concerns it’s important to be aware of any potential “RED FLAGS” that could derail or cause a delay during the escrow process.
By no means is this intended to worry or scare you, it’ hopefully helpful and will inform you that. ..things can, and do happen at times during escrow. Yet with competent, heads up escrow officer and a knowledgeable, experienced REALTOR, often times delays can be avoided when you have an early warning sign. That’s why it’s crucial to read the pre-liminary title report early that has been issued by the title company in your transaction.
Here are just a few red flags to be aware of and watch for during the home buying and selling process, specifically when it comes to an issue of delivering clear title to the buyer:
- The Existence of Another Loan on the Property.
- Back Property Taxes
- Mechanics Lien
- IRS Liens
- Back Spousal Support
- Back Association Dues
- Recent Change of Ownership (meaning recent deeds executed and recorded against the property).
- A Deceased Owner Remaining on the Deed.
- Bankruptcies (Properties that may not be released from proceedings).
- Lis Pendens (Legal action recorded against the property by another claiming an interest).
This is just a short list, yet these are probably the most common issues when it comes to escrow delays and in reality many of them can be avoided with proper notice. I can tell you from experience I’ve personally seen every single one of these myself and some as recently as the past 60 days.
So don’t wait until the last minute… avoid home buying red flags, be sure to review early in the escrow (along with your REALTOR) your pre-liminery title policy, you will be glad you did!