Clear title issues?

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,

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

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.