Morris|Hardwick|Schneider
General Warranty Deeds versus Limited Warranty Deed
REO sales are a major part of the current real estate market. Most REO sellers require that the buyer sign a REO contract addendum which overrides provisions of the GAR contract. One common change is that the seller provides a Limited Warranty Deed to the buyer at closing.
So, what is the difference between a General Warranty Deed and a Limited (or Special) Warranty Deed?
Under a General Warranty Deed, the seller warrants the title to the property from the beginning of time. If there is a defect, regardless of the cause, the buyer has the option of proceeding against the seller for any resulting damage. Under a Limited or Special Warranty Deed, the seller is only warranting the title during their ownership. They do not warrant anything that may have happened prior to the foreclosure.
As a practical matter, most buyers who find themselves in the midst of a title problem are more likely to file a claim under their owner's title insurance policy than they are to sue their seller. And if the buyer did want to sue the seller, it is almost inevitable that the seller has moved out of state, out of the county or out of radar. The cost of getting the seller into a court with proper jurisdiction may well exceed the cost of the claim.
Hopefully this will answer any questions your buyer may have on this topic. If it does not, please feel free to have them contact me directly. I look forward to serving you and your clients.
Jennifer Karel
Morris|Hardwick|Schneider
Senior Managing Attorney
JKarel@closingsource.net
East Cobb East Cobb Remax
3730 Roswell Road, Ste 25 2050 Roswell Road
Marietta, GA 30062 Marietta, GA 30062
770-565 3800 678-784-4230
Thursday, July 14, 2011
Wednesday, July 13, 2011
U.S. Home Prices Poised to Climb as Foreclosures Wane, HUD’s Donovan Says
Home sales have increased in six out of the past nine months.
Photographer: Joshua Lott/Bloomberg
Prices for U.S. homes may climb as soon as the third quarter, ending declines as foreclosures decline make more home available for sale, Housing and Urban Development Secretary Shaun Donovan said.
“It’s very unlikely that we will see a significant further decline,” Donovan said yesterday on CNN. “The real question is when will we start to see sustainable increases. Some think it will be as early as the end of this summer or this fall.”
Home sales have increased in six out of the past nine months and the number of property owners in default is declining, Donovan said on CNN’s “State of the Union” program. Housing prices will begin rising as the number of foreclosures declines, he said.
“In the long run, it’s a good time to buy,” Donovan said. “It’s so affordable today compared to where it’s been for generations.”
Contracts to buy previously owned U.S. homes rose 8.2 percent in May, following a revised 11 percent drop in the previous month, the National Association of Realtors said on June 29. A separate report by the Chicago-based group on June 21 showed sales of existing houses, which make up about 96 percent of the market, declined in May to a six-month low.
Home prices fell 4 percent in April from a year earlier, the biggest drop in 17 months for the S&P/Case-Shiller index of values in 20 cities.
An estimated 1.7 million U.S. homes were in the foreclosure process and expected to be put on the market as of April, down 18 percent from the peak, as fewer loans entered delinquency and more distressed homes were sold, CoreLogic Inc. said in a report on June 22.
Shadow Inventory
The so-called shadow inventory represented a five-month supply at the current sales pace, the Santa Ana, California- based real-estate information company reported. The inventory’s size is a barometer of housing-market health because foreclosed homes sell for lower prices and falling values discourage buying, said Sam Khater, CoreLogic’s chief economist.
Donovan said lenders are adding requirements “that don’t make sense” for risky borrowers after the government, through the Federal Housing Administration, raised the minimum down payments for a house purchase.
“We can’t over correct,” Donovan said. “We can’t go so far in the other direction that we cut off homeownership for people who really can be successful homeowners.”
Encouraging home ownership should avoid giving buyers an expectation of making $1 million overnight, Donovan said. “We can get back to the place where it’s a good investment and we will be able to make money over time.”
Photographer: Joshua Lott/Bloomberg
Prices for U.S. homes may climb as soon as the third quarter, ending declines as foreclosures decline make more home available for sale, Housing and Urban Development Secretary Shaun Donovan said.
“It’s very unlikely that we will see a significant further decline,” Donovan said yesterday on CNN. “The real question is when will we start to see sustainable increases. Some think it will be as early as the end of this summer or this fall.”
Home sales have increased in six out of the past nine months and the number of property owners in default is declining, Donovan said on CNN’s “State of the Union” program. Housing prices will begin rising as the number of foreclosures declines, he said.
“In the long run, it’s a good time to buy,” Donovan said. “It’s so affordable today compared to where it’s been for generations.”
Contracts to buy previously owned U.S. homes rose 8.2 percent in May, following a revised 11 percent drop in the previous month, the National Association of Realtors said on June 29. A separate report by the Chicago-based group on June 21 showed sales of existing houses, which make up about 96 percent of the market, declined in May to a six-month low.
Home prices fell 4 percent in April from a year earlier, the biggest drop in 17 months for the S&P/Case-Shiller index of values in 20 cities.
An estimated 1.7 million U.S. homes were in the foreclosure process and expected to be put on the market as of April, down 18 percent from the peak, as fewer loans entered delinquency and more distressed homes were sold, CoreLogic Inc. said in a report on June 22.
Shadow Inventory
The so-called shadow inventory represented a five-month supply at the current sales pace, the Santa Ana, California- based real-estate information company reported. The inventory’s size is a barometer of housing-market health because foreclosed homes sell for lower prices and falling values discourage buying, said Sam Khater, CoreLogic’s chief economist.
Donovan said lenders are adding requirements “that don’t make sense” for risky borrowers after the government, through the Federal Housing Administration, raised the minimum down payments for a house purchase.
“We can’t over correct,” Donovan said. “We can’t go so far in the other direction that we cut off homeownership for people who really can be successful homeowners.”
Encouraging home ownership should avoid giving buyers an expectation of making $1 million overnight, Donovan said. “We can get back to the place where it’s a good investment and we will be able to make money over time.”
Monday, July 11, 2011
Ways to Capitalize on National Homeownership Month!
June may have been National Homeownership Month, but there’s no reason you can’t still capitalize on that fact the other 11 months out of the year.
Touch base with your spheres and past clients via email. Mention it was recently National Homeownership Month and that this made you think of them.
Let your contacts know you’re still in the business (a fact more important than you may think in the current housing market).
Mention that it’s an active buyer’s market in metro Atlanta and that first-time buyers, in particular, are making up a large segment of the market. Nationally, first-timers represent nearly a third of home sales.
You could also remind them in the email about where mortgage interest rates currently stand. With these rates hovering around 4.5%, chances are extremely good that it will be cheaper to own a starter home than rent in today’s housing market.
And don’t forget to ask for the referral! Too many agents have gotten away from this in the down housing market. Perhaps your contacts have a friend, coworker, neighbor or relative who needs a few real estate questions answered.
Offer to be that person in your email announcing National Homeownership Month.
Continue to watch for news updates and tips for agents in future postings on this blog as we will work to update it every week with more news you can use!
Touch base with your spheres and past clients via email. Mention it was recently National Homeownership Month and that this made you think of them.
Let your contacts know you’re still in the business (a fact more important than you may think in the current housing market).
Mention that it’s an active buyer’s market in metro Atlanta and that first-time buyers, in particular, are making up a large segment of the market. Nationally, first-timers represent nearly a third of home sales.
You could also remind them in the email about where mortgage interest rates currently stand. With these rates hovering around 4.5%, chances are extremely good that it will be cheaper to own a starter home than rent in today’s housing market.
And don’t forget to ask for the referral! Too many agents have gotten away from this in the down housing market. Perhaps your contacts have a friend, coworker, neighbor or relative who needs a few real estate questions answered.
Offer to be that person in your email announcing National Homeownership Month.
Continue to watch for news updates and tips for agents in future postings on this blog as we will work to update it every week with more news you can use!
SALES MEETING!!!! Tuesday, July 12, 2011
Just a reminder of sales meeting in the morning. We would appreciate everyone being there. We need your mind and your body.
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