Yeah, they admit in the video that the developers didn’t hire a surveyor. The developers are completely fucked here, and I think they know it.
If they had hired a title company, the company would have hired surveyors, so it’s pretty much a for sure thing they didn’t hire a title company. Developers usually only do that at closing when they sell the property.
If that house had a mortgage then the lending bank almost certainly required the use of one. If it had a construction loan it too probably required a title search and certification.
I could be wrong, but I thought you couldn’t get a mortgage for a house that isn’t already in a livable condition. That would have come after the thing was completed.
In the US this could be done with a short term variable loan called a construction loan that releases money in stages as the build progresses. Once finished if it’s not being paid off it would be refinanced into a more traditional mortgage. Mortgages are often pretty different in the US vs UK, most US mortgages are for fixed rates for 30 year terms whereas most UK mortgages are fixed for a much shorter period and then go to variable rates. So you’d be hard pressed to get a bank to agree to a fixed rate 30 year mortgage for a house that doesn’t exist yet.
Developers don’t mortgage individual houses, they were still trying to sell the house to someone according to the video, and offered to sell it to her at a discount.
This crap happens (not that at it should and you’re correct). I know someone in construction. They leaned a property that the title company just… didn’t see the lien? Property was sold, The lien wasn’t bonded off or anything either.
It got resolved but man, that would have been a mess. I think at that point the new homeowner is on the hook, and would need to get their due by going after the title company?
Yep, I have a good friend that ran into this issue on his home he bought 20 years ago. After 5 years of living in the home and making payments on it, it was finally discovered that there was no clear title to the property going back 60 years…
It took another 2 years to clean it all up, but it required the township, county, and a state agency to get involved to make a couple of problems “just go away”.
Thats insane. And at that point they were there for 7 years. Most people stay in there house longer, but any million things could have made them want to move in that window. Sick family member, job, whatever, and they would have been stuck.
It wasn’t as bad as it sounds. No one was really contesting his ownership - least of all the bank. But a governmental paperwork error had been made a long time ago and no one caught the error until after he bought the property. But it took a long time to fix it due to different levels of government that needed to fix the original error.
My friend still lives there today and I doubt he will ever move out.
The Title Company has to be sweating bullets right now. It’s their whole job to prevent problems like this.
Yeah, they admit in the video that the developers didn’t hire a surveyor. The developers are completely fucked here, and I think they know it.
If they had hired a title company, the company would have hired surveyors, so it’s pretty much a for sure thing they didn’t hire a title company. Developers usually only do that at closing when they sell the property.
I’m confused by why the landowner is being sued here.
Because it’s the US of A. It’s hard to win lawyers fees so why not?
Either the hail mary, being incredibly stupid, or possibly some form of insurance requirement.
Based on previously presented evidence option two seems likely.
It’s hilarious u think these shady developers hired a title company 🤣🤣🤣
If that house had a mortgage then the lending bank almost certainly required the use of one. If it had a construction loan it too probably required a title search and certification.
I could be wrong, but I thought you couldn’t get a mortgage for a house that isn’t already in a livable condition. That would have come after the thing was completed.
It may not be the same in the US, but in the UK, you can mortgage a new build project.
The company releases money in stages as the build progresses, normally.
In the US this could be done with a short term variable loan called a construction loan that releases money in stages as the build progresses. Once finished if it’s not being paid off it would be refinanced into a more traditional mortgage. Mortgages are often pretty different in the US vs UK, most US mortgages are for fixed rates for 30 year terms whereas most UK mortgages are fixed for a much shorter period and then go to variable rates. So you’d be hard pressed to get a bank to agree to a fixed rate 30 year mortgage for a house that doesn’t exist yet.
Developers don’t mortgage individual houses, they were still trying to sell the house to someone according to the video, and offered to sell it to her at a discount.
Again, all in the video with all the answers :)
Montgomery Burns Slant
DrillingHousing Company?The video doesn’t appear if you default to reader view.
This crap happens (not that at it should and you’re correct). I know someone in construction. They leaned a property that the title company just… didn’t see the lien? Property was sold, The lien wasn’t bonded off or anything either.
It got resolved but man, that would have been a mess. I think at that point the new homeowner is on the hook, and would need to get their due by going after the title company?
Yep, I have a good friend that ran into this issue on his home he bought 20 years ago. After 5 years of living in the home and making payments on it, it was finally discovered that there was no clear title to the property going back 60 years…
It took another 2 years to clean it all up, but it required the township, county, and a state agency to get involved to make a couple of problems “just go away”.
Thats insane. And at that point they were there for 7 years. Most people stay in there house longer, but any million things could have made them want to move in that window. Sick family member, job, whatever, and they would have been stuck.
It wasn’t as bad as it sounds. No one was really contesting his ownership - least of all the bank. But a governmental paperwork error had been made a long time ago and no one caught the error until after he bought the property. But it took a long time to fix it due to different levels of government that needed to fix the original error.
My friend still lives there today and I doubt he will ever move out.