Problems You Never Want To See: "I See Dead People"

Presented by Kay M. Creasman | Virginia Counsel & VP of ORNTIC

During the summer, I read an article about the owner of a winning bid at foreclosure in another state who wanted to delay settlement because three people were found deceased inside the residence. The purchaser questioned if notice to the deceased owners was valid. 

Stop and think about the timing.  Unless they were delinquent prior to passing away, it takes at least three months of delinquency before foreclosure occurs in Virginia. Then, notices must be given to the owner at the address they have provided (usually the property address) and must be posted in the newspaper. It’s entirely possible that all the correct steps were taken to properly foreclose the property. You also need to wonder how these people weren’t missed by anyone for months. Didn’t their mail pile up? Wasn’t the mailbox overflowing? Did they have everything sent to a PO Box? How did they stop all the junk mail people get?

In another peculiar case I read about years ago, a woman, who appeared to have no close relatives or friends, was working in her house and slipped between the walls in the attic and passed away. No one could locate her. Her pension and Social Security checks were deposited automatically. Her mortgage was paid automatically, as were her utility bills. She had a yard service that showed up on a scheduled basis to mow the grass. Her mail was delivered through a slot in her front door (and piled up inside).

Soon after her death, the mortgage was paid in full (she was retired). Eventually, the house was sold for unpaid real estate taxes. The purchasers found years of mail inside, as well as all of her possessions, which were treated as abandoned. No one could locate her. Only when the new owners renovated an upstairs wall to expand a bedroom did they find her body. This is not a title issue, per se, but is clearly one that no one would want to handle.

A third peculiar case dealt with a phone call from a very upset title agent. A body had been found in the crawl space under a house she was scheduled to close at the end of the week. What should be done? The police were notified, and, as many of us know from watching television and films, if declared an active crime scene, closing will clearly be delayed. Further investigation found that the body was actually a deceased pig that just looked human from the angle that could be seen in the crawl space opening. Again, not a title problem, but a matter that clearly delays closing until it’s resolved.

Title and settlement agents almost always have problems when the title search discloses a cemetery or single grave site on the property being conveyed. Some purchasers find this to be a marketability problem and absolutely will not continue to close. At that point, the parties should be advised to seek independent legal advice as to responsibilities under their contract.

We hope your October transactions have no peculiar problems such as these and that every closing goes smoothly.