Title companies

Bird Dogs, Wholesaling
1

Hi,

Can anyone share what experience they have had dealing with title companies that was helping them with info pertaining to foreclosures?

Thanks for any input.

NJ

2

Hey,

Select a title company that knows how to work with investors and have some experience dealing with forclosures. You’ll have to find one or two in your area that are comfortable with these types of deals.

I’m assuming when you say forclosure, you mean pre-forclosure. After the forcloslure sale, the title usually goes to the lender in the form of a speical deed or certificate of title. If you’re talking about pre-forclosures (before the sale), then it’s just a purchase transaction with a few extra details:

  • Title is clouded with foreclosure filing or lis pendens. Make sure the title company will insure the title without exception.

  • People in forclosure tend to have other financial problems resulting in liens and judgements. Just make sure your title company accounts for these.

  • Get a preliminary title search completed asap. Chances are good that other liens will come up. You’ll have to then renegotiate the deal with the buyer to adjust the price (if that’s even possible) by the amount of the other liens.

I’m not clear on what information you think the title company is providing regarding foreclosures. My title company is not advising me in the risks and aspects of purchasing a forclsure property. They are simply insuring the title and preparing the necessary paperwork. They are also serving as my attorney. They will not educate me about the pitfalls of buying foreclsure properties. If you need this type of information and need to understand your state laws regarding forclosures, hook up with a good real estate attorney who know the forclosure process.

If you ask more specific questions, I may be able to help better.

Jimbo

3

Hey Jimbo,

Wow, thank you Great information. Sorry I was’nt clear, Yes I was referring to pre-foreclosures. You answer alot. Has it been your experience that they will provide you with a mailing list (including labels) of people receiving a preforeclosure notice?

Thanks

4

No. That’s not the title company’s business. Title companies insure title for buyers and lenders. They are not in the foreclosure business. They neither monitor foreclosures nor publish lists of foreclosure properties.

I’m not really familiar with a pre-foreclosure notice per se. The closest thing to a pre-foreclosure notice is a letter from the lender informing the borrower that they are behind in payments or in default on their mortgage. Once a legal notice is file, you’re dealing with a foreclosure situation.

The first thing that’s official recorded (in Florida) is a Lis Pendens, a legal notice is alerting the public that a legal action is pending on the property (i.e. foreclosure). The foreclosure clock begins ticking and the game changes dramatically. You’ll have to deal with lender and its lawyers at that point.

Since most people tend to hide their real financial situation from others, it’s a bit challenging reaching pre-foreclosure owners. That’s because you don’t know who is and who is not facing foreclosure.

I could write a book on how to reach these folks, but I’ll save that for another time. Just think about what someone facing foreclosure is doing, where they are going and who they are talking to. That should give you some clues about where to find them.

Jimbo

5

Call several title companies and ask them if they work with investors & ask them what they offer and why you should chosse them over the competition. Be sure and do your due diligence

6

thank you everyone. This was so very helpful.