Nota:
That statement deals with putting the settlement agent on notice that they MUST comply with the investors closing instructions…it does not address the anonymity issue you wish to acheive.
Just draft a letter that outlines what documents are enclosed and are to be executed by the Note seller.
Then add the sentence; “Please do not disclose the identity of my investor / assignee to anyone without our written permission…”
Posted by Nota Bene on March 31, 2006 at 15:27:11:
Is it normal for a title company to disclose the buyers closing instructions to the seller of a note? I should mention, that this is a full disclosure state.
I went through a long drawn out process of buying a note, using an institutional investors funds, who then immediately purchased the note from me. Essentially a simultaneous closing note flip.
The title company took my investors closing instructions which included their contact info., and sent them to the note seller.
Most of the reason I didn’t have the note seller simply sell the note to my investor, was to avoid disclosing my investor. I had the purchase contract in my name, etc.
And now, the title company has gone and nullified all the work I did by disclosing my investor. I could of saved myself 5 weeks of aggravation in dealing with this title company and note seller if I had simply put my investor in direct contact and sat back, let them deal with all the hassles and gotten paid the same.
Again, the primary reason I didn’t do that, was to keep my investor’s details confidential, which is what I thought one of the purposes of closing through escrow was. No?
Is this title company crazy? Or is this normal for a full disclosure state? If it’s not normal, do I have any recourse? Why should it be the note seller’s business who I’m getting my funds from?
Are you saying you did this with two separate escrows or one? If it was two escrows then the title company may have blown it depending on the details, but if it was one escrow then all the parties are part of the same transaction and I wouldn’t be upset, especially if I didn’t provide any instructions to the contrary. I would just change my technique for the future. Plus if I wanted to know your investor I would just look in the county records after it is recorded in most cases.
Nota:
Title companies do crazy things…Most Note brokers who are trying to keep a distance between themselves, the Note seller, and the ultimate investor of a Note (like Sunvest) should send a closing & disbursement letter to the closing agent, title company spelling out EXACTLY how the transaction is to go down and also requesting that the is no disclosure of who the ultimate assignee of the Mortgage & Note is…
Re: Title Company Procedures - Posted by Nota Bene
Posted by Nota Bene on April 27, 2006 at 12:04:58:
I’m not 100% clear if it was one or two transactions. My investor would not purchase the note until receiving a final closing statement indicating that the loan had closed. This implies there were two transactions. In addition, the title company recorded it at that point. To me that says that’s the end of the transaction. However, I’m not 100% sure because of the fact that the note seller still owed the bank money from his original purchase of the property, which he couldn’t pay off until the note sold. The title company paid off the original bank lender from the proceeds of the note sale.
This is all still very important to me because I of course intend to buy more notes in the future, plus I intend to buy some REO property to flip. I just got done reading about somebody else’s transaction where the title company informed the REO bank that the new lender was financing the property for 45K more than the REO bank was selling it for. Because of that, the deal fell through and some people lost their jobs. That’s all I know about that story.
My problem is, I don’t know what the escrow/title company is allowed/supposed to disclose in a full disclosure state (as oppossed to a non-full disclosure state).
Re: Title Company Procedures - Posted by Nota Bene
Posted by Nota Bene on March 31, 2006 at 16:12:38:
Thank you for that info. My investor’s closing instructions includes the statement “These closing instructions will not be superceded by any other closing instructions that may be presented to settlement agent…”. Does this mean there’s no hope of using your solution? Also, could you post (or email) a sample letter that could be used in such a situation?
I hope I am asking this question in the correct 'place"… at what point in time does the title/escrow co. search the “named” property for clear title? thank you