How can I check for leins before making an offer?

Question

I'm new to real estate investing and am looking to purchase REO properties. Is there any way I can check the title before making an offer?

Thanks in advance

Scott M. · Answer

I assume your talking about Detroit given your last two threads were about Detroit.

If your buying REO's with a full warranty deed as Jon suggested your fine - don't worry about it.

If your buying on QCD then you need to figure out liens / water / taxes.

For water call the water depo - for liens call a title company (happy to suggest offline) - for taxes go to the wayne county treasures office online site.

And if you are buying on a QCD - be careful - so many lists are trying to sell homes with HUGE taxes - I just got a list today of 24 homes - the guy wanted $60K for them and there were back taxes of $75K.

have to be careful or make sure your doing a full closing with a warranty deed.

Brandon Gadish · Answer

Chad,

Just one quick comment  on checkiing title.  They are right on a REO purchase or other traditional purchase there won't be an issue, but if you do end up doing deals such as pre-foreclosures or buying at the courthouse, you will want to know how the property is encumbered.  If you have a relationship with a title company they will generally perform a title search for free for you if you close deals with them.  Remember this is NOT Title Insurance, but you will have a good idea going into the deal, and it wont cost you a bunch of money for a property you may not ever own.  If you don't have a relationship with a title company I would suggest making an appointment to meet with them and let them know you are an investor.  They will want your business and will explain what they have to offer you.

Regards,
Brandon Gadish
Landlord Technology LLC

Jon Holdman · Answer

Don't bother if you're buying REOs.  The bank (or, any seller on a traditional transaction) will clear the title before it closes.

Ted Akers · Answer

Plenty of good advice for you here.  When you establish that relationship with a title company you can ask them for an O&E (Ownership and Encumbrance) Report.  It is not always a full search, but does include encumbrances.  If you are proceeding with a property ask them to update the O&E and provide a full title commitment.  If you are doing business with them you can typically get O&E's for free, as long as you do not wear out you welcome asking for dozens of them.

How can I check for leins before making an offer?

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