BiggerPockets

I have a student with a sub2 deal all but closed. However, we cannot find a title company to process it. The two I use both refused. His local title company has no clue what to do with this type of transaction.

Had no idea this was considered taboo by some.

Anyone know of a national title company that will assist us? Old School Title in Cleveland is out. I contacted them already. The deal is in Dallas, also. So, it can be local to that area.

I appreciate any help you can lend.

I don't, but I put an inquiry out to my contacts on Twitter and here on BP. Hopefully someone steps up.

http://twitter.com/jrdorkin/status/1796232428

Andrew,

The title company needs to know that we are going to be a loyal customers for starters to get free title reports for free. That's the challenge when we're not doing this all the time. Otherwise, our title company should give us access to property profiles online to see what liens are filed for what it's worth.

Meanwhile, nobody does anything for free, so, if we've got to pay $100 dollars for a complete title search, cuz we can't/won't got to the Recorder's office, then we do it.

Otherwise, we can check the title ourselves. Meanwhile, the title company "can" insure the title as marketable, and make exceptions for the underlying loans. This is common when the Buyers find small liens and the Seller can't/won't pay them off as a condition of the sale, etc.

Frankly, we run our own (manual) title checks at the Recorder's office, and unless something shows up that would kill the deal, we immediately record our deed, This way anything that is recorded after our deed is recorded, will be considered invalid and unenforceable.

In this situation the lien could be considered a "defamation of title," and become an actionable item with fines and penalties against the lien holder.

Meanwhile, taking title subject to should not stop us from getting title insurance, but it may mean changing title companies in this instance. The biggest thing is to get the title recorded asap, so that any heretofore unrecorded lien become unenforceable. That's exactly what a title company does. We can do the same and save a bunch of money in low-risk situations. If we don't have much invested in the house anyway, how much are we out, if the title is defective? Just asking.

I hope this helps.

BTW, I always ask the seller a couple of times during my negotiations if they know of any lien notices, etc. Most sellers will tell you, but we still check the county records to confirm.

Jay :cool:

If you do choose to use a title company to close, I ahev one in the Metroplex you can use who understands creative purchases and the owner is also an attorney so he knows what he is doing.

Send me a PM or email for his contact info.

Only if they take you up on it Nick.
No PM received yet.