Posted by Stamper_WI on 2/15/10 7:40am
Msg #322830

BOA forecloses on the wrong house

I have a Deed question on this one. When you go to the county site and look at recent sales, it does show they bought it in 2005, Examination of the deed shows it was bought for $10 and other considerations. The records show it was bought for $139,000. Under what circumstances would the deed NOT reflect the total purchase price?

http://www.tampabay.com/news/business/realestate/bank-of-america-forecloses-on-house-that-couple-had-paid-cash-for/1072632

Reply by Bob_Chicago on 2/15/10 8:45am
Msg #322831

In most (if not all) states, a deed conveying RE needs to

have "consideraton" (value) in order to be valid. Even if not sale price.
(eg. H adding W to title or correcting from maiden name, or gift to kids)
deeds traditonally reflect"$10 and other good and valuable consideration "
Also if actually being sold, the actual sale price is not reflected as it is nobody's business except buyer , seller and county tax assessosor. Actual sale price is usually reflected on a
seperate form with is used to compute xfer taxes and assesses value.

Reply by Stamper_WI on 2/15/10 9:33am
Msg #322837

Re: In most (if not all) states, a deed conveying RE needs to

In Wi, I think the registrar still stamps the tax transfer fee on the deed at the time of the recording. You can do the math and see what it sold for.

Reply by MikeC/NY on 2/15/10 3:58pm
Msg #322907

Re: In most (if not all) states, a deed conveying RE needs to

"Also if actually being sold, the actual sale price is not reflected as it is nobody's business except buyer , seller and county tax assessosor."

Not necessarily true, Bob, depending on where you live. Our MLS shows the sales price of all recent home sales, and there are services we Realtors can subscribe to that will give us that info - going back years in the case of multiple sales - along with other stuff we may not be able to find in public records.

Reply by BobbiCT on 2/15/10 10:18am
Msg #322842

"nominal consideration" deed

Many attorneys who draw up conveyance deeds use the phrase "nominal consideration" or "$10 and other good and valuable consideration."
Why: Saves time, money and potential for errors on part of everyone drafting and review the deed.

When selling/conveying real property, the deed is drafted, reviewed and approved by all involved attorneys prior to closing; often lender wants to see it, too (make sure the legal in deed matches legal in appraisal and use the legal from the deed for the mortgage so that both match exactly). By not stating exact dollar amount in deed, the deed can be drafted and approved early on in negotiations (60-30 days ahead of closing date). If inspections etc. change the purchase price in the deed, all parties have to get a new proposed draft reflecting the lower purchase price. Also, nosey nellies need to do a little math or check the assessor's records to find out what someone's house sold for.

In the heyday, I could have thirty deeds drafted and approved prior to closing. If $$ changed (which often happened), my only concern was the HUD-1 and the conveyance tax calculations ... no need to change the deed and fax it off to everyone for approval again.

Reply by Stamper_WI on 2/15/10 10:49am
Msg #322849

Re: "nominal consideration" deed

Thanks Bobbi and all. I have been out of real estate for awhile and probably remebered enough on this subject to be dangerous.

Reply by Moneyman/TX on 2/15/10 6:31pm
Msg #322927

Re: BOA forecloses on the wrong house .. Again in TX

Here is a story about same thing in TX

http://www.galvnews.com/story.lasso?ewcd=4e1cfb1bebbf31e1

The funniest quote of entire article (not for the homeowner) ---
“Based on previous discussions with Mr. Schroit, we do not believe the case will show merit,” (BofA spokesman) spokesman Rick Simon said."

I know this is a "standard" type of statement, but really? Really??