Posted on: 01st Dec, 2009 02:39 pm
I am in the process of selling my current residence, and purchasing a new residence. I had originally taken out a HELOC against my current property because I was going to do some repairs on my current home in order to get it ready to sell. Two weeks after taking out the HELOC and drawing the funds, I had an offer to buy the house. The offer was a cash offer and the purchaser wants a "clear" title. I immediately repaid the HELOC and had it closed. The lender informed me that in Texas they have up to 60-days to release the lien. I received a letter from the lender stating the account was paid in full and closed, AND a letter from the trust company informing me that they had instructions to release the lien and it was in process. The purchaser and I will be using an attorney to draw up the papers instead of a title company. My question is, are my letters from the lender and the trust company enough to be considered a "clear" title? I am wanting to go ahead and close on this property so that I can use the proceeds on my new home which I am scheduled to close on the new property in the next three weeks.
I am not an attorney and cannot give legal advise. With that being said, the information you mentioned above is adequate to convey clear title to the buyer of your home.
Hi Guest,
The best proof of a clear title is the "lien release certificate" which you would receive from your lender. In the present situation, you can offer the letters from your lender and the trust company as a proof of the fact that you've paid off the HELOC. Later on, when you receive the lien release certificate, you can submit it to the new owner of the property.
The best proof of a clear title is the "lien release certificate" which you would receive from your lender. In the present situation, you can offer the letters from your lender and the trust company as a proof of the fact that you've paid off the HELOC. Later on, when you receive the lien release certificate, you can submit it to the new owner of the property.