Michigan real estate talk – home buyer worries

When buying a Michigan home many home buyer’s worry about unpaid taxes and unpaid water bills.  Yes they are a lien on the home and could be costly.    Water bills in Michigan will be added into the taxes if not paid.  But when buying a piece of Michigan real estate you should always hire a title company to do the closing.  If you are buying any Southeastern Michigan home whether it is a lake house on Hammond Lake in West Bloomfield or a home in Auburn Hills through a realtor you will always do the closing through a title company.  If you are doing a mortgage you will be doing a closing through a title company.  So why do we use a title company?

A title company is like a line of defense for any home buyer.  A title company will do the research on the home and all the public records that pertain to the title of the home down at the local county building.  They are looking for any liens against the property.  They will be looking for old mortgages, contractor liens, tax liens and other liens.  The title company is going to issue a title insurance policy against the property.  Basically they are telling you that the home has a clear title or they will pay up to pay off that old lien or mortgage that is still owed.  They are insuring it to be basically clear and free so that the property can transfer from the buyer to seller.  If there are clouds on title or issues they are not going to close the deal.  It is that simple.  They are not going to close on a property that has an unpaid mortgage, a lien, or a water bill on it.  They will not allow the seller to do that.  So there is no way a buyer will be able to buy it and close on a home through a title company if the property has liens, old mortgages, or unpaid taxes or water bills.  Your mortgage company will not let you do it either.  It does not matter what real estate in Metro Detroit it is…. the title company will take care of it.

At closing the seller must pay off all mortgage, all unpaid taxes, any water bills, and any contractors liens.  It will come out of the sellers proceeds and go to the title company.  The title company then pay the appropriate people whether it is the city for the taxes or water bill, the old mortgage company, or a contractor.  They do not leave it up to the seller to do.  The title company collects the money at closing and disburses to the correct people.  The seller then gets the left over money.

So if you are buying a piece of Michigan real estate you have one less worry.  As a home buyer all back taxes, all old mortgages, all contractor liens, and all old water bills will be paid off at closing.  That should make every home buyer less worried about any extra money that they may have to pay.  I hope this little article about Michigan real estate talk and home buyers worry answers one more question you may have.  So if you are buying a lake house on Loon Lake in Wixom you can rest easily.

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May life always treat you and your family well

Russ Ravary

Homes for sale in Wayne County MI

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