Anybody have insight about clearing titles?

6 Replies

I have a house I'd very much like to purchase but there a complication : This house was foreclosed on. The proceedings went through as normal but the commissioner forgot to close escrow after the case was resolved. 

Now the title officer said they won't insure it. Because the escrow was not closed ( within 30 days ) they think it's outside their expectations. 

To make this work I need clear title at some point in the near future. As I have cash for the purchase price I can buy but I would need to be able to get title insured - what are my options?

Can I foreclose on the property again /(other other legal action) or is there a lenient title company out there I don't know of yet? There is nothing else wrong with the title it's just a paperwork technicality.

Thanks - I really can't tackle this one on my own and appreciate your help

The title co. Should be able to tell what is required to make it insurable.

Thank you for answering. They won't insure as it stands. Problem is it's an auction so it ends in 3-4 days and I just want to know there's a way to clear title by that time. So there wouldn't be title insurance and that would not be a good thing to leave open. 

I'd contact a real estate attorney. They'll be able to advise you on your best course of action. I'd also check with the auction house and see if the property could be purchased subject to the title being cleared. If you're really not comfortable with the title situation you may need to just pass on this one. Unless the seller gets it straightened out in the next couple of days there's not really anything that can be done before the auction closes.

So this is an REO auction, thru, hubzu or the like? If clear title is being offered, you won't close until They clear the title. If you only get a QCD, then you'd have to do it later. You need to find out What Would Need To Be Done to clear the title. That way you can decide of you want to take it on after you get it "as is" from the auction.

Sam you will need to start a Quiet Title action.  These are done routinely by real estate attorneys.  However, it takes time and could be very costly if interested parties contest.  It may be best to pass of the deal as it poses risk.

Thank you I will follow up with that. Will call attorney in to see what can be done. I am only asking because I am comfortable with the title. The issue is whether I could finance cash out latter to say buy other properties because it is 400k+ and I don't want it sitting there without a clear title. I think they (bank or lending part of equation) are going to want to have title insurance so it needs to be possible latter on. 

For reference this is offered as a "special warranty deed" I have no issue with it I know it's different from regular title insurance. The thing is I'd like to title insure it on my own which needs the issue resolved. I have other things in process but I didn't want to leap without knowing my options should the paper trial I'm working on not resolve it.

My first step was to contact bank about as-is they are on another continent won't do it as they don't want to be involved / risk a litigation. Am talking with title company they aren't sure if they will be able to insure or not as they are getting documents regarding the late escrow closing from the commissioner. Nobody has a clue where they placed these records. So it's a matter of having a backup option. 

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