New Owners Seasoning / Chain of Title

sagarthakar · Joined: 15 May 2007 Posts: 68 25.97 Dollars($)

Please can anyone explain the difference between the two !!!

New Owners Seasoning is related when a person purchases a new property.

Chain of Title is related when any borrower tends for Rate/Term or Cash Out Refinance.

Can anyone spread more light on the same.

Thanks

Sagar

sara · Posted: Thu Jan 31, 2008 1:05 am Post subject: RE: seasoning and chain of title

Hi Sagar,

Seasoning is related to the length of time for which a seller owns a property. A new buyer willing to purchase that home will not be able to get a conforming loan (that which conforms to Freddie Mac/Fannie Mae guidelines) if he doesn't put less than 20% down and the seller hasn't owned the home for a period of 3 months.

The chain of title is required by lenders whether you buy a home or refinance it. It shows who has owned a property and for how long. It also helps to find out what liens have been placed on the property, their priority and when they have been placed. The chain of title helps to prevent fraudulent flipping of properties.

Take Care

lisascherzer · Joined: 04 Jan 2008 Posts: 746 93.70 Dollars($)

Seasoning is just how long someone has owned the property. A chain of title verifies it.

All times are GMT - 7 Hours

Page 1 of 1