If you are thinking about buying a FORECLOSED HOME there are some important considerations
With the overwhelming inventory of foreclosures across the country, many buyers have been afforded the opportunity to buy homes for cash. That’s right — $50,000, $100,000 and $150,000 could make for a nice fixer upper but foreclosed homes purchased with cash do not require title insurance at closing.
However, this is very risky; if someone disputed your title ownership, you’d be responsible for the hefty costs of legal expenses to fight the claim.
It may be difficult to purchase title insurance because the title insurer may find that foreclosed properties are currently more risky to insure but it is well worth it. Our law firm provides expert title insurance search and document review in order to assure you that the title you pay for and expect to receive is what you actually get.
Title insurance protects the buyer from a myriad of things. Old loans, forged deeds and unpaid liens are just a few of the things title insurance protects you from.
Title insurance companies are responsible for tracking every recorded event surrounding a property starting with the current title holder. From there, information is gathered on every previous title holder. If a questionable event is discovered, the company is required to do everything within its power to prevent, or eliminate, any risks or losses that may affect your ownership status. Without insurance, a situation like an existing unpaid mortgage or judgment on the property would require you to pay off the debt.
The overall benefit provided by title insurance is it takes into account the likelihood that recording errors may exist within the history of a property. It protects the buyer from taking the fall should an unknown event come to light after ownership is transferred.
If you are considering purchasing a home in a short sale or a foreclosed property, our firm may be able to help you.
