If you are worried about surprises on this deed, you can do two things to stop it. One, put the house in a land trust. Then you can purchase new title insurance in the land trust’s name. The title company will cover any surprises that may pop up here (even though they won’t because you have the property in a trust and all leins would be in the sellers name). I do this when I am unsure about the deed in the futrure (due to the seller being in financial trouble).
I’m considering taking a property subject to the existing financing, but want to make sure I don’t encounter any surprises down the road that I could potentially catch now. The seller has been unemployed for several months and is 4 payments behind on her mortgage. I ran a full title search and it came back clean, but is there anything else I can do to verify this?
Also, what will prevent any liens or judgements against teh seller from attaching to the house after I take it? I assume the fact that it will be in a trust as opposed to the seller’s name?