Continuity of Title Requirement by New Lender

Foreclosures, Short Sales, Tax Foreclosures
1

I have a short sale deal under contract. Freddie Mac stipulates that their borrower must deed the property to me and that that deed must be recorded.

I have a buyer whose mortgage company is balking at the idea that the chain of title would evidence a “flip”. In other words, they want to see continuity of title from the seller.

Any thoughts on how to address this issue? Thanks, Mike

2

Hi Mike,

There may be a way to achieve your goals, but would need more detailed info on your contract terms and your buyers contract (their lender). How much time to you have left on your contract to hold this deal together.

It also may depend on what state you are in. You may need to restructure this alittle.