Hi! I am a new investor and just had a preforeclosure homeowner sign a purchase and sale agreement, stating that I could buy his property for $140,000. The appraisal is around $165,000. Hree is my problem. He has agreed to sign the warranty deed and I know then to take it to the courthouse and have it recorded but …THEN WHAT? I plan on taking over his payment, paying his note so it is up to date, having him sign a contract, etc. Should I take out title insurance? Do I need to use a title company? I plan on marketing the house and then selling it ASAP, paying off the homeowners $140,00. But when does the title company need to be involoved in this? When I sell it or when I take it over, by deed, from him? I have run a title search, arranged an inspeciton, etc. It is just this detail that is holding me up! I am anxious because the clock is ticking and the homeowner is such a great guy who is just down on his luck. I do not want to messthis up! I live in Missouri. Thanks you for all of your help…this is such a great site!
Amy
What is your exit strategy? Are you going to L/O, Rental?
I am lucky that I know how to do a complete title search.
It sounds like you do not. Call a local title Co. Have them do a title search and get title ins. Shop this around. It could save you a few bucks. Go to your local club and see who they recommend.
Bruce
hellow Amy
you need to do a tittle search to see if the owner has a second mortgage or any other liens of the property ,(which will affect you if you buy it)…also have an ascape clause if anything should arrived unotice (remeber this is business that should work for you and him not just for the home-owner)
when you have search and feal confidence that you will gain profit is the right time to seat an appointment to close the deal of course you will need a tittle company to transfer the property ligaly to you.
hope everything gose well…
p.s …if you have a mortgage broker he/she can help you on this… 
thank you