Title Insurance On Property Bought At Trustee Auction
I'm planning on going to my first trustee auction next month. I'm trying to get prepared for everything. I had been told that you should do a title search prior to the auction. The listing service referred me to a records company that will do a search inexpensively which will show liens, judgements, and taxes owed. It does not offer opinions on title. The same listing service also recommends that you purchase owners title insurance on any home that you purchase at auction. SO, once I have purchased will a title company issue a policy? If there is a title problem, it's basically too late for me to do anything about that - I would need to figure out a way to cure the defects. Am I understanding this correct? Should I simply make sure that I am bidding low enough to eat any future losses that I could incur by buying something with a defective title? Am I getting the gist of it that I am making something of a leap of faith that the lender who is foreclosing on the property had done their due diligence well enough when they gave the mortgage that the title is going to be ok? Thanks in advance for any help in understanding how this process would/should go down and how to protect myself. BTW, I called a national title company (based out of chicago) to ask them what services they could provide me and they seemed to think i was speaking greek.
Title insurance is bought to protect you. The searcher sells you title insurance to guantee their search. If they make a mistake They pay the cost.
I buy it on all my properties
Lori
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I just can't seem to find the answer I'm looking for: When purchasing a home at the trustee's sale, at what point do you buy title insurance? That same day, or when you are the actual owner of the property after the end of the redemption period? Thx.
The same day!!!!!!! The same time!!!!!!! You need to be covered from the start. Something could be recorded as you are paying the clerk.
Lori
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