Newbie Question
If a seller deeds a property to you, but financing is still in his/her name. What happens if a lein is put against that property before you can resell it? This may be a dumb question due to lack of experience, but it was posed to me by an attorney that I was screening today. I did not have an answer, but knew I could find one here. I could be faulted for not explaining my intentions/techniques better. :-?
As long as you record the deed right away that should prevent any liens being placed on the property
My response would be, "If I purchase the property and do a thorough title search, and record the deed immediately, how could anyone place a lien on MY property? Isn't that what I pay title insurance for?"
Not everyone gets title insurance on sub-to deals, it really depends on your comfort level and how long the previous owners owned the property. (And what State you're in!)
Thank you both very much. That is what I thought, but was unsure of. He admitted he was not very familiar with creative investing, but is interested. He comes highly recommended, with a reputation of being detail -oriented to a fault. He does work for a couple of banks in town and even suggested trying to get leads on distressed properties before they go into foreclosure. With the bank's permission of course. I left copies of forms I would be using for him to inspect and adjust for state specifity. I know I'm rambling now , but I'm just getting excited that this is all starting to come together. Thanks again. :-D