Title Search on Foreclosure--Am I being overly cautious?

Question

I'm about to buy a foreclosure for flip, and I'm given the option of going with the bank's title company with title insurance paid by them or securing my own title company at cost to me.

Is there a compelling benefit to having my own title company and not going with the bank's people? I'm leaning towards getting my own, but please tell me if I'm being overly paranoid.

Thanks in advance for your advice.

Marty

Guy Gimenez · Answer

@Martin G.

The title company the bank uses knows where their bread is buttered and will take care of the bank, not you. What if you wish to get coverage exceptions removed? Think the T.C. will make it easy or hard for you to do so?  Not all title company documents are the same either.  If YOU take business to a title company, the T.C. is more likely to seek your repeat business and is usually more willing to help solve form or coverage issues.

I used to fight with title companies all the time on these issues until figured out it's easier and cleaner for me to use my preferred title company who will not fight back on every form change request or title commitment revision.

Bill Gulley · Answer

Jim, thanks for the mention, but as you said, federal liens may still exist, taxes, student loan matters, SBA loans, judgments to the government. In addition, states have "super liens" as well, past child support, workmens'/material liens may survive, fines, fees assessed by municipalities like mowing fees and taxes, so it depends on state law as to what survives a foreclosure. :)

Jim Viens · Answer

Agreed. Bill Gulley 's got it. Whatever title company it is will be on the hook if a defect comes up down the road. So I'd go with the one I DON'T have to pay for. The only thing that will still appear on the title after a foreclosure of the 1st mortgage is Federal liens so if there aren't any of those you're clear.

Martin G. · Answer

Thanks, everyone !

Eva Salas · Answer

question @ Bill G: those liens u mentioned in your last post, child support, etc. would all show up on title report yes? Whichever title co used?

Bill Gulley · Answer

Use the bank's title company, the search has been paid for, if they were not a decent company I doubt the bank would be using them. Make your offer with clean title be acceptable/insurable, which it probably is. Ask about tax liens or "super liens". Good luck :)

Title Search on Foreclosure--Am I being overly cautious?

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