OfflineAre you interested in buying a foreclosure? If so, you have one thing on your mind: making money. While there is nothing wrong with this, any mistake along the way could cost you big time.
In the past, many have made the mistake of not completing a title search before purchasing a foreclosure. There is no reason to believe that this search will turn up something, but there is always the chance that this could be the case. If you neglect to do a title search and there is a problem, such as a lien, it could cost you thousands upon thousands of dollars. Is that a risk you are willing to take?
Now that you understand the importance of doing a title search before buying a foreclosure, here are three ways of completing the all important process:
Visit the Courthouse
For many buyers, there is no replacement for doing a title search in person. Is this going to take more time? Most definitely. That being said, you are now in position to do the search on your own, in person, ensuring that you don’t miss out on a single detail.
The process of visiting the courthouse to complete a title search is quite simple. All you have to do is determine the county in which the house is located, visit the courthouse, and ask for assistance. From there, you will be pointed in the right direction.
As time consuming as this may be, it will put your mind at ease, allowing you to make a purchase without any fear.
Use the Internet
There are many reasons to avoid a title search at a courthouse. Not only are you faced with doing all the work, but this can be time consuming. On top of that, if you don’t live in close proximity to the courthouse you are faced with travel time and costs.
With all this in mind, a growing number of people are using the internet to do a foreclosure title search. With our service, for example, you never have to leave home to complete this process. Here is what you need to get started:
- Title records are indexed and stored by name, not address.
Use the name index to find the property you are interested in purchasing.
Go through all the documents, making sure that you determine what is current and what is not.
Note: some courthouses have an online database that you can access remotely. Before you visit the courthouse in person, contact the county to ask if there is any way you can complete the search online. This could save you a lot of time and money.
Hire a Professional
When buying real estate in a traditional manner (not a foreclosure), you will likely hire a title company to handle this process for you. While this is not your only option, it is one to consider if you are worried about missing something of importance.
With the right title company on your side, you can let them handle this detail while you worry about everything else. They will report back to you with any information, allowing you to then make a decision on whether or not you should move forward with the purchase.
Note: this is the most expensive of the three options, but something to consider nonetheless.
With this advice, you should now have what it takes to complete a title search for any foreclosure you are interested in purchasing.
This is great advice to be followed on any property that you are planning to involve yourself with. Clearly, if you plan to hold the property the title search is imperative. You want to make sure that you haven’t missed anything in your research. Protecting yourself and your investment is top priority. But, even with a deal you plan to assign or wholesale, it’s a gesture that will weigh positive in your favor. I personally always have my title company to the searching for me, that I way I can focus on my other deals.
Whether you do it yourself or have a professional do it for you, the point is to do it.
To make a very long story short, I am trying to buy a property that doesn't have a clear title. The owner and I agreed on a price- what she owes on the place. In the mean time of me securing a loan from my local bank, the owner let me get a renter in there, since she has not been living there for a year and has been paying the mortgage. Our arrangement was that I would keep $100/month of the rent as a management fee, and she would get the rest until we closed.
The title company said there is a business loan attached to her WHEDA loan on the property. The owner went through bankruptcy, the lesser of the two, and they won't let the house be sold until her business loan is paid off. The total of both loans is double of our agreement. I'm working with a short sale agent, but he doesn't think this will ever go through.
Anyone have any fancy thinking to make this property work?