BiggerPockets

HELLO everyone!

i am a beginning investor focusing mainly on pre-foreclosures, i currently understand the whole foreclosure process along with what the banks are looking for to accept a short sale.

so my question is WHEN and how do i do a title search (for liens and judgments) to figure out if i really have a deal or not?

now i know title companies or attorneys have the ability to preform this action for me, but i know all of you investors just don't go around throwing $200 or more just to see if the property you are looking at or working with is a deal even without your short sale getting accepted yet and etc

and i heard of getting a preliminary title search say from an real estate agent, but is this something pretty good to go off of to see if a deal is potentially there? i even tried actually going down to my court house/records office to research liens and judgments on properties and man u have to do alot of work just to find all this stuff just for one property so i know it has to be a better & faster way ((plus my county isn't on-line, so i actually has to go down there to research))

now my next question is, the way i plan on selling these properties once i get my short sale accepted will be in a double closing (so i don't have to bring any funds to the table), so i was wondering should i still get title insurance on the property even when i'm flipping it right to my end buyer when they'll most certaining will get title insurance on the property?

Hi,

I see a couple questions so I'll try to answer what i can. As far as a title search, they are very thorough. If you don't want to pay for a preliminary title search, here's something you can do to save time.

Get the owners name or names, and the parcel number. The parcel number should be on the listing somewhere. When you go to the recorders office, you only need to do 2 searches. First search by the parcel number for any records for the past few years. Any liens, judgments, mortgages, deeds, etc. against the property will be listed. If that looks clear, go back and search the owners name(s). A good idea to search is that if the persons name is John Smith, search the last name Smith, and first name J. This will display any judgments or liens against the owner(s). It does take some time, but it saves money too.

As far as your double closing ideas. First keep in mind that in order to do a double closing, the end lender must be notified they are funding two separate transactions. With that in mind, you should know that most conventional banks will not allow a double close. If your buyers are traditional (go to a bank) buyers, you may not have much luck doing a double close. Double closings are much easier between investors who are using cash, private money, or a hard money lender.

Your question of taking and paying for title in the middle is entirely up to your title company. Some may charge you a small fee and just pass the title to the buyer. Others will not, and you will have to take title and pay for it, then transfer to the buyer. That creates a seasoning issue, which is why most conventional financing will not allow it. Investigate this when talking to title companies. Make it a question to ask them among other things like can most of your closing costs be shifted to the buyers side so you don't pay twice ;)

Good luck to you. I hope this doesn't seem to negative, it can all be done, it just takes alot of work and cooperation.

4EverLearning - Is it possible for you to share the contact information of that title company? I am in NY and pretty much in same boat for this kind of scenario. Thanks for your help.