I’m, considering buying a bank owned home, but I’ve never done it before. I’m going to buy with cash. The property is listed ‘as is’ and the bank won’t agree to any contigencies in the contract.
How should I deal with title insurance?
Some work has been done on the house, but wasn’t finished. What happens if a contractor has placed a lien on the property? Does the bank have to pay off the lien or can they somehow pass it on to a new owner? How do I check for something like this?
I’ve always been under the impression that a survey is needed when buying a property, is it?
Are there any other issues that anyone would suggest I look into before writing a contract?
Your purchase contract will spell out the title situation. Normally, the bank will be expected to deliver a good title, free of all encumbrances. I would definitely get title insurance. Often the bank will provide that for free, but they will want to use their own closing agent.
I normally do not get a survey when buying a property.
are there any addenda coming from the bank? If so, it will usually spell out what you can expect for the title.
survey? things happen over the years and even though it may not matter to you because you’re paying cash, your future buyer mught not have that flexibility…lenders will often require surveys as they like to know what they’re buying. find out now if there has been any monkey business going on over the years to insure a futrue sale doesn’t fall through because of a slight veriance that can take weeks to clarify…
If I am correct a survery only cost around $150 in most area… It is rather cheap anyway. if the deal is good, pay for the survery.
Honestly, unless additions have been done and the house has a zero lot line, your pretty safe with knowing the house is not on your neighbors land.
The bank will probably not purchase title insurance, since they will most likely be selling the property on a Special Warranty Deed rather than a general Warranty Deed.
Your settlement attorney or title company will sell you the title insurance and collect the premiums on the HUD-1 as part of your closing costs.