Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
I was scheduled to close on an REO last Friday but couldn't because the one of 10 deeds of trust was not released. Apparently it was left over from the owner before the currently foreclosed owner. Anyway I'm anxious to get going but the bank can't give me a date of when they will get all the proper paperwork (the title company that filed the deed is now out of business). So the bank has offered to transfer ownership immediately and close as soon as the deed is released. What are my liabilities in doing this????
Thanks
Residential Real Estate Broker · Dixon, CA · Member since 2009 · 14 posts · 6 votes
17y
On another note. They title company may try to add the prior title issue as an exception in the title policy. Do what you can so that they do not accomplish that.
Residential Real Estate Broker · Dixon, CA · Member since 2009 · 14 posts · 6 votes
17y
Wow, that is almost unheard of. Be carefull though, there are still risks. You should look into a form of renters insurance because your policy will not take affect until you close. Also I would not put much money into fixing it up just in case the deal falls apart. It may be useful for getting a head start on planning for your rehab or showing to potential renters, if that is what you are doing. But I wouldn't sign any contracts or put much work into it until the deal is done. Also I would not want to pay rent on a per day basis if it was me. It probably will work itself out but you never know how something like that will turn out.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
17y
As Scott said be careful - personally I would either close in escrow or "delay" the close until they have clean title - in fact - that is what I would do rather then have them hold on to the cash.
Lots of potential liability issues here and if something does go wrong during this period be sure the bank will shift responsibility to you.
I wouldn't put a dime into it until this mess is cleared away.
Residential Real Estate Broker · Dixon, CA · Member since 2009 · 14 posts · 6 votes
17y
On another note. They title company may try to add the prior title issue as an exception in the title policy. Do what you can so that they do not accomplish that.