Yes you always want to do a title search. You have to make sure the foreclosure was done correctly when HUD foreclosed on the property.
I’m buying a property where the seller brought it as an REO. Despite what the courses and gurs tell us about not having to do a title search on REO’s, my title co. wants to make sure the bank foreclosed correctly and that everyone who had an interest in the property (mortgage holders, plaintiffs who won judgments against the owners, etc.) were served correctly.
Get title insurance. Your buyer’s title co. is going to want to see that you were able to get a title co. to indemnify when you purchased it.
I just got a great deal on a VA foreclosure that is going to net me around 30k with minimal work or rehab needed. The realtor who I used said the government guarantees me free deed, and that I wouldn’ have to do a title search, my banker tells me otherwise. Can there be liens on VA purchased foreclosures? that I will have to pay at closing? I should have researched this area in depth but got excited with the deal and trusted the realtors word and experience. Am I possibly screwed here if the previous owner had back taxes? Please someone out there respond to my question. Thanks
My experience has been that VA will not close on the sale if they can’t deliver good title. I bought one and found a water bill had not been paid. There was no lien but the water company would not turn on the water until it was paid. I called the VA and they paid the bill. I’ve bought lots of VA foreclosures and have yet to do a title search. That said, mine were all VA Vendee Financing. Since that program is no longer available you must provide financing. If your lender requires a title search you’ll have to do it. It’s not an unreasonable request.
Re: Bought a VA foreclosure, now am worried!! - Posted by Linda Simms
Posted by Linda Simms on July 29, 2003 at 15:53:40:
You bought a V.A. foreclosure that is going to net you $30k? Almost all V.A. foreclosures that I have seen are way overpriced, unless it is a reduced cash price listing? I hope you have done your comps correctly on this one and I hope you net $30k, but that has not been my experience with V.A. foreclosures. Now HUD foreclosures are a different deal. You can low bid on those.