Title search on Foreclosure

6 Replies

So I went on my local government site to do a title search on a property that I'm interested in and I'm reading what I think is the foreclosure document however, it doesn't say anything stating it is. When looking at OPA # it matches, so reading document and the sole owner seems like she past away in 2018 "God bless her soul". The last sentence states Thereby vesting title upon... known heirs of Mary Ann campbell, deceased. Would this be a bad investment just because it seems too many people have ownership of the house?

This sounds more like a probate case than a foreclosure (and it could be both, which further complicates things). 

In a situation where there are multiple owners (it doesn't matter if they are heirs, siblings, spouses, or just several unrelated friends or partners who own the property), the only real questions you have to answer (aside from whether it's a good investment) are "Who owns it?", "Will they sell it?", "Who needs to sign off on the sale?", and "Will they all sign?". 

If you have a relationship with a title company, sometimes it's best to start with the end in mind and ask them "If you were going to close this transaction, who would you need at the closing table to sign?". That's who you'd need to sign the contract.

Regarding the title search, this is the title company's job and pretty much every real estate contract requires that you receive free and clear title from the seller, so once you hand the title company the signed contract, they generally take it from there. 

Originally posted by @Mikey Grabon :

So I went on my local government site to do a title search on a property that I'm interested in and I'm reading what I think is the foreclosure document however, it doesn't say anything stating it is. When looking at OPA # it matches, so reading document and the sole owner seems like she past away in 2018 "God bless her soul". The last sentence states Thereby vesting title upon... known heirs of Mary Ann campbell, deceased. Would this be a bad investment just because it seems too many people have ownership of the house?

 A foreclosure transfers title to the holder of the mortgage or lien, regardless of who owns the property at the time. However you should be cautious buying foreclosures in PA where the mortgage holder is deceased. There is a 15% inheritance tax in PA which you may be responsible for paying if you win the foreclosure

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@Chad U. Thank you! That last bit really opened my eyes. As being absolutely new to real estate and self teaching myself about sheriff sales and everything else that's included in real estate investing i only have so much i want to spend to cover any other hidden expenses. Do you have any recommendations for professional title companies that I can use online? I'm very busy running my startup and don't really have time to go to title offices.

Originally posted by @Mikey Grabon :

@Chad U. Thank you! That last bit really opened my eyes. As being absolutely new to real estate and self teaching myself about sheriff sales and everything else that's included in real estate investing i only have so much i want to spend to cover any other hidden expenses. Do you have any recommendations for professional title companies that I can use online? I'm very busy running my startup and don't really have time to go to title offices.

 ProtitleUSA