Incorrect Address
I have an offer on a short sale property that is listed as St. when the actual addres is Ave. (according to the tax records). The underlying lender (needing third party approval from) has all of there loan documents saying St. The had me change all paperwork including the HUD-1 to read St. The title company only changed the HUD-1 with me promising by closing to have everything corrected back to Ave.I'm afraid I'm going to have problems at the closing table. Any advise?
Larry
Replies to This Discussion
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Permalink Reply by Wayne Brooks on
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I jsut had one where the county authorities have it as ABC Rd., but the USPS has it as South ABC Rd. I made this note(AKA South by USPS, etc.) on all doc.s. Some had ABC, Some South ABC as the lead address. Also, we did a contract addendum where buyer acknowledged the differing descriptions. That ended up being good enough.
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Permalink Reply by Short Sale Superstars LLC on
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Larry,
We have dealt with this issue numerous times, especially with Bank of America files being ran through equator. My advice to you would be to get one of the following documents in attempt to correct the discrepancy with the property's address.
- Letter from the Post Master (a.k.a. postmaster letter, post office letter, postal letter)
- Letter from 911 rezoning letter
Hope this helps and If you have any questions please feel free to contact us at our door is always open,
310-564-6389
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Permalink Reply by Ghana Bigsby on
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What does the title report say?
It may have to match the title report or some how satisfy the underwriting title company to avoid risking the integrity or validity of the title insurance policy in the future. I would talk to the title officer before deciding on an acceptable solution.
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Permalink Reply by Tara Samney on
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Hi Larry, I've been through this scenario before (usually on zip codes that are reassigned to different post offices). Title told me it is better to have the correct address on the contract. I recommend getting an addendum signed by purchaser and seller clarifying the subject property is correct by tax records and not St as listed on the mortgage and include the data sheet from the tax report. That is usually what works for me to satisfy them. It's like hitting your head against a brick wall getting them understand the address they have doesn't exist. I don't think you can close though unless you have an addendum or a contract with correct address. Good luck- you can get it done, just have to get them to understand.
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Permalink Reply by Bryant Tutas on
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Contact 911 to have them issue a letter stating the true address.
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Just as in any contract for purchase I would use the legal description as well as any address...and include in the address "also known as XXXX st (or ave.)". remember that the legal description in the mortgage NOT the address or the tax id that encumbers the property, not an address. There are many instances of street name changes, Legal descriptions are not so whimsical.
Example might be one address on 5 acres on county tax records as a tax lot, 5 acres on the original title and legal description and only 3 acres included in the mortgage description. This kind of thing happens a lot when splits take place and one is developing property. the legal description in the mortgage is the controlling factor. As in any purchase agreement and in any approvals assure that the legal description from the lender be included in the document. This resolves any conflict and is the proper description and is required in any deed orkdocument for clarity and chain of title issues.
Keep it simple...ask for all docs to have the proper legal description, it was in the original mortgage, it should be in any document addressing the property.
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Dirk, Unfortunately this usually doesn't help in all cases.
Every one of my contracts submitted has the full legal description, tax ID and property address. It would seem simple and common sense for the mortgage just to be updated to match this, but it isn't. I checked with a closing attorney who handles a lot of my short sale closings, and he confirmed this problem is rather common here. We have a zip code that used to be called Richmond by the USPS even though it is Chesterfield County- and not the City of Richmond. A few years ago it changed back to Chesterfield, so even though the property is legally Chesterfield (and always has) it is frustrating getting the servicer to acknowledge the change. Print outs of tax reports, USPS zip codes don't help- anything showing the true address. Someone is looking at it and needs this to match that to go on to the next step.
The only way I have ever gotten past this hurdle is to give the correct legal address on everything and then include an addendum to the purchase contract showing that the property is indeed this address and not the address on the mortgage and why- then include accompanying info.
Bank of America stops every one of mine if this is not clear. I've gotten into the habit now of just getting the addendum done up front, and it saves a lot of headache later.
Yes, common sense would seem the proper legal description would be all it would take....I wish it were that easy sometimes!
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