Posted by Kristine-CA on August 15, 2003 at 09:38:34:
Don’t ask the owner for anything other than to pay for the policy (to come out of his proceeds). Then ask the title company to prepare the docs necessary so that they WILL write a policy. And make sure you have the cooperation of seller as his signature will probably be necessary.
Flipping ain’t all peaches and cream…but stay in control of the deal. Hopefully there is enough of a spread to make this worth your time and additional costs.
This is my first deal and its turning out to be the assignment from hell. Everytime I get close to getting this thing over and done with, a new issue arises…I’m scheduled to close next Friday, but as soon as the title search came back, I was told that I would have problems.
The owner that I’m buying the property from bought the house from HUD using cash. He said he didn’t buy title insurance when he got the property because he was told he didn’t really need it because a title search was performed.
On his deed, the description of the property is in Lot-Block form, but there is no legal description (metes and bounds) of the house. The title company I’ve been dealing with said that their underwriter won’t insure the property because they don’t have enough information to define the area, and that the homeowner can’t sell to anyone who wants title insurance. I was told to let the homeowner know that he would need to get a corrective deed inserting the legal description. Then, I was told that when buying in NJ a survey is needed anyway, so I may be responsible for getting one (estimates from $200 to $1800)? Does anyone have advice or suggestions? For all newcomers, flipping ain’t all peaches and cream…
Posted by Kristine-CA on August 15, 2003 at 09:47:02:
Don’t ask the owner for anything other than to pay for the policy (to come out of his proceeds). Then ask the title company to prepare the docs necessary so that they WILL write a policy. And make sure you have the cooperation of seller as his signature will probably be necessary.
Flipping ain’t all peaches and cream…but stay in control of the deal. Hopefully there is enough of a spread to make this worth your time and additional costs.