Clear title issues?

Foreclosures, Short Sales, Tax Foreclosures
1

Hello all,

I have been investigating the foreclosures in my area. There are tons of them.

My question is - is it possible for a lien to be hiding in the background even though a title search has been done and comes back clean?

Example - a property is just starting the foreclosure process. I offer the owner a fair price and they accept it all before the bank can foreclose. My offer is “subject to” a good inspection and clear title. Everything comes back fine. The title is clear on the 1st of the month but I will not close on it for 2 weeks.
Is it possible that during that “between time” a lien could pop-up or be placed?

If so, how do you protect yourself exactly?

Thanks in advance,
Brian

2

Howdy Brian:

It is possible but not very likely. Title companies do an update 24 hours prior to closing deals. Who did the title search for you? If a title company they will require an update. The committment usually explains this in small print.

Hope this helps answer the question

3

That’s exactly what the title insurance is for… if one comes up that they did not find before the closing… then they will end up having to take care of it. I would never buy a property without title insurance… just for this reason.