Title search processing is the most essential aspect of real estate mortgaging businesses. When a person plans to buy a property, the buyer approaches a mortgage lender for a loan to finance the purchase. The mortgage lender has to check for the titles of the property preceding the lending process. This involves many crucial steps and an Offshore Mortgage Processing firm is usually employed to complete the title checking process as it takes considerable time and effort to complete efficiently. Here are the 5 steps involved in title search process:
1) Check the Entire Chain of Titles
The very first step in title search involves checking the entire chain of titles over the last 60 – 70 years. This reveals a list of owners from whom the title has been brought or transferred from time to time. Title Search Services are usually done starting from the current owner going back to the previous owners over the last 60 to 70 years. This is essential to understand the legality of the ownership of the property.
2) Check for any clouds and clear them
Clouds come when there’s any discrepancy in title transfer or any gap between two transfers of title. This can be checked and cleared in a few hours time if there’s no legal hassles involved. But at times, it becomes a huge issue which could take much longer to resolve.
3) Check for the taxes paid
Checking with the right authorities, the details on taxes paid including any pending amounts to be paid can be verified. This is also an important part of Property Title Search as the taxes and penalties over many years may amount to a fortune at times. So before the purchase is finalized the details on taxes paid must be checked and any penalties pending must be cleared.
4) Inspect the property
Once the title documents, rights, taxes etc are checked and confirmed, the property must be physically inspected by an examiner who is knowledgeable. The examiner once again cross-checks the title documents and verify the location and actual space of the property as mentioned in the documents. Sometimes, the outsource mortgage processing firm finds that the area shown in the document is not actually available due to various reasons. In such cases, necessary corrections are done to the documents and then only the property is considered for purchase and lending.
5) Check for claims or judgment
Sometimes there may be claims or judgments on the property resulting from some legal cases. All such judgments and claims must be settled before the property is bought by the purchaser. This may involve some legal procedures and payments before the title gets cleared off all claims and judgments.