Forclosure and liens - Posted by Brian

Posted by Michael Morrongiello on March 10, 2000 at 17:44:11:

Brian:
IF your seller acquired title from HUD its a safe bet he also was given an owners title insurance policy when he purchased. See if that policy is available or the closing statement from his purchase which would indicate an outlay expense for title insurance.

The question then remains; Since he has taken title and ownership from HUD did any liens, judgements, assessements, attached to the title?

You can play it without the coverage if you feel its a safe bet or save yourself the headache and purchase a title insurance policy. Thats why they call it insurance.

If you intend on “Flipping” the home short term many title insurance policies can provide what is sometimes called an “open policy” and that will then save you the addtional expense when it comes time for you to provide title insurance to a subsequent buyer. They can usually keep this open for 24 months.

Best of luck

Michael Morrongiello

Forclosure and liens - Posted by Brian

Posted by Brian on March 10, 2000 at 17:03:54:

I am purchasing a property where the seller will hold the mortage. He purchased the house in 1995 it was a HUD home. My question is since the house was forclosed on is it a safe assumption that all liens and judgements junior to the first mortgage are wiped out? I am trying to save the expense of title work and went to the county office and pulled as much information about the property and the owner as possible looks good so far.

Thanks for all the help in the past year!

This will be my second investment property in one year

Thanks again
Brian
NY