I have to say that I really enjoy the bigger pockets community. Everyone has been so encouraging that I feel more prepared than ever to invest more. I've come upon a property that I really like but the situation is one that I've not heard of before.
I'm in the market for my second rental and I'm looking at a HUD foreclosure. I inquired about it because I saw that it was back on the market and the agent said that it had title issues that needed to be cleaned up. The foreclosure process was not completed propertly and that there are some leins remaining. She said that it may also be possible to have my offer already submitted for consideration once the title issues are resolved.
Now my agent looked into it more and he says that the property has NO title at all. He's never heard of this and neither have I. He said that it means that the property is not financable. Outside of that, it's a huge risk.
So my question is: does this mean that the property has no title at all? What are my options? Is it even worth it? I was thinking that maybe if there are still outstanding leins that I contact the lein holders and ask if they would settle. Get that in writing, then submit my offer minus the settlement amounts.
Is this whole thing two risky and I should just move on to the next property?
Thanks for any thoughts.
No such thing as "no title". The owner who got foreclosed on had title, and HUD no has title, with some liens still attached. Unlikely they'll keep your offer if it takes months to clear title, as they may have to reforeclose. Let HUD fix it.
Thanks! So I guess I'll just ask HUD to keep me posted for when the title issue is cleared.
I once got an offer accepted at $9000 for an REO (not HUD though). And the closing got delayed and delayed because of title issues on the seller's side. The listing agent kept calling me and asking if I was still interested, and I always told her yes, keep the offer in on it. It eventually got worked out and they even let me have the deal for only $7000 due to the delay!
The home was last sold on an FHA loan and was foreclosed and became a HUD home so it was sold with a title/deed. Keep watching for it to come back on at hudhomestore.com and when it comes back on you can place a bid
Join the Largest Real Estate Investing Community
Basic membership is free, forever.