YOU ASK:

I know you can get a title search done for a foreclosing property but can you get title insurance?

WE ANSWER:

If you are able to take full possession of the property, then yes, title insurance can be issued to you.

Prior to that, however, the insurance company will not provide you with title insurance coverage.

This means that when you are buying a foreclosing property, you are expected to do the research and due diligence yourself. Or, you can hire a professional to perform the title search, and to determine if there are any outstanding debts or liens in the policy (which is very probably considering that the property has foreclosed).

It is very important to get title insurance coverage as soon as you are able to take ownership of the property. Even if a title search has been done thoroughly, there still may be title defects that are not readily seen through public records.

When we say, ownership, this basically means that all the redemption and grace periods given to the previous owner (to pay for the outstanding balances on the property) have run out and you are given the Sheriff's Deed to the property.

Please be reminded that buying foreclosed properties is not an activity for the faint of heart, not for one who could not afford to lose his investment in the property. There are a lot of issues and things to consider.

You may have to pay off outstanding tax liens that have been attached to the home. You should also remember that the property is sold on an "as is" basis. You may also have to contend with disgruntled owners, who may still be occupying the property. This means that you may have to organize an eviction process against the existing owners.

However, if you have the guts to go ahead with this kind of investment and if you play your cards right, this can prove to be very profitable.

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