Not True, Not True, Not True.........

Yes it is the job of the abstractor to report any and all liens but when the Lender orders a Title search it is to ensure that their are no encumbrances on the property that may prevent the Lender from taking ownership of said property in the event of a foreclosure, and to ensure that the seller has the legal right to sell the property.(All this is done to protect the lenders interest.)  It has nothing to do with the Real Estate Agent Listing the property. The Real Estate Agent will base the list price of the home on a comparative market analysis of sold homes in the area, to determine what a home "should" sale for with proper marketing and exposure, this figure is not based on the number of liens on a property. When the Agent meets with the Homeowner he/she "should" disclose the liens to the agent and the agent will then perform his/her research and come up with the best probable price supported by the market. If the asking price of the home covers the lien then great for the seller, if not then the seller needs to figure out a way to pay off the lien or his home will not sell because if all parties are doing their job to the best of their abilities all of this will come out in the wash. Title searches can not tell you if the liens on a home are greater than the market value of the dwelling. (Only the Appraiser can do this.) 
 Just to name a few, this is what the title search MAY provide:
1. Current owner, and copy of the Deed.
2. Legal & Vesting
3. Liens & judgments
4. Mortgage information
5. Property History Reports

Nowhere in the above documentaiton will the Title Searcher be able to provide an estimate of value for the subject dwelling (Not apart of the job function) which is what the Lender base their decision on when lending money. (Outside of the Borrower's credit of course.) It is not the only part but a tremendous amount of weight is given to the appraised value in regards to the Lenders decision making. Yes the Title Must be in order and it plays a huge part but if the value is not there then the Lender ultimately rejects or denies the deal. (Going back to my original point that the title search is not the MOST important part)  The Lender won't reject a deal where there is a $20,000 IRS Lien IF the lien can be paid off through the proceeds of the sale provided enough equity is in the home to do so. But the Lender will reject a deal if the the contract price is $200k but the appraised value was $180k. Mainly because the lender will NOT lend more than what the house is worth. Many of the problems a Searcher faces can be cured, a home that is not worth the contract price is in-curable thus leading me back to my original point that the Title Search is NOT the MOST important part of the Real Estate Transaction.
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