Title Company Recognizes Lien Date as part of CSED

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  • #44812
    Terrence Power
    Participant

    I have a client trying to refinance his home. The title companies are using the date of the lien filing as the initial tolling date for calculation of when the CSED began. This means my client can’t refi for another 12-18 months even though the CSEDs have expired and the refiling dates have passed.

    How do we make these idiots understand they are wrong?

    #44857

    I believe Eric touched on this last week where some financial professionals don’t get the expiration or ignore it unless they see a lien release. You may have to get that done.

    #44902
    James Wade
    Participant

    I would ask them the reason they use that particular date. So how did you come up with that as the start date? Did you take a class on how to properly calculate a CSED? Did you refer to the IRM to properly calculate the start of the CSED? Etc.

    I suspect if you ask them how they are sure that is the proper way that you will find they either are using what someone told them or are just guessing. I have had trouble with a title company before as well. They don’t seem amenable to reason but mainly go off our way or the highway. Maybe suggest the client find another company if possible.

    Jim Wade

    #44976
    Michael Redden
    Participant

    Your issue here is not primarily in two areas. First, the title examiner who examined the title found the notice and did not understand the statute of limitations.

    Secondly, you have to remember the purpose of the title examination. The lender wants a lender’s title insurance policy. The biggest question that you need to ask is what are the title insurance carrier’s underwriting guidelines for tax liens. These will potentially be different for each title insurance carrier.

    That’s all that matters here. What will the title insurance carrier accept so that you can fulfill the requirements of schedule B-1 and/or B-2 of the title insurance commitment. This commitment likely also contains the contact information for the title examiner themselves.

    This is the ONLY person worth talking to in this conversation. Don’t rely on the closer/escrow officer. Get right to the source. You should be able to pose this question directly to the carrier/underwriter through the title examiner and possibly get them to see things your way.

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