5 Major Problems That May Prevent Your Home From Closing

What Can Go Wrong in Buying a Home…

and How Title Insurance Can Help

The process of buying a home can be taxing — emotionally, physically, and financially. In today’s market, just getting an offer accepted can be a very long and exasperating process. And with so many steps, there are ample opportunities for mistakes to be made, and what happens when they do? Keep reading to learn more about potential errors and how title companies like Heights Title work hard to avoid some of them.

Some of the Most Common Problems While Closing on a Home

•   Lending problems are the most common reason why deals may fall apart.  A buyer may open an additional line of credit, which can change the debt-to-income ratio or the property may not appraise for the contract sales price. This may make the deal fail to close. To avoid this, work with accredited and reputable real estate agents, loan officers, and title companies in your area who can fully explain the process and take their advice.
•   Items discovered during home inspections and the subsequent negotiations with the seller are another huge reason why a deal may not close. As a buyer, be prepared to schedule an inspection with a reputable inspector quickly after the offer is accepted and work quickly once the report is received to address anything that is found.
•   Errors in the public record may be discovered during the closing process. Whether it’s a name misspelling, a mistake in the legal description, or a “break” in the title chain, these could all lead to problems at closing or down the road. Any of these issues can delay a closing while the parties are working to correct the errors, but title insurance can protect you in the event something is discovered in the future.
•   If the seller has any liens placed on their property, this should come up during a title search, and the seller will be required to pay the liens before selling the property. However, sometimes things can get missed, and your title insurance policy may provide protection for you later on if the lien does not get cleared at closing.
•   If you’re buying property from an estate, the discovery of unknown heirs is a rather unlikely, but possible circumstance. During the sale of the property, a title company will perform a search to ensure all heirs are identified and there are not any judgments against the estate. However, mistakes can happen and years later an heir or an unpaid creditor may show up and claim rights to your property.  Again, your title insurance can help cover this risk, and if faced with this issue, provide you greater protection.

Above are just some of the stressful issues that can come up while purchasing a home.  Because this is oftentimes the largest investment a person can make, Heights Title takes our responsibility seriously. We strive to do all we can to avoid issues at closing and protect the buyer in the future.

If you have any questions about the concerns outlined here or other title and closing issues please never hesitate to reach out to us! Our team has years of experience and has just about seen it all when it comes to buying and selling property. Our attention to detail is what sets us above the rest. The experts at Heights Title are standing by and ready to help.

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This material is provided as a courtesy and for educational purposes only. Please consult your title professional for specific information regarding your situation.

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All the Bumps in the Road

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