Hi everyone! 

I am currently in the process of acquiring a property. I am having an issue obtaining title insurance. This property had several liens on it in the past,all very small amounts here and there. I do understand these lenders are unlikely to "wakeup"  With that being said I want to protect myself just incase they do "wake up".

The current owner didn't know what title insurance was until I explained the value and reason why it is necessary. The current owner didn't opt for title insurance when they purchased the property.The previous owner passed away and that's how the current owner was able to purchase. I was told by the title company an order to secure title insurance I would have to submit several documents to the title company for the previous owners who passed away. I was able to provide every single document required except for one, which was the marriage certificate. I looked for this marriage certificate in Philadelphia, where the property is located but also the surrounding counties and each state the owners were from and lived in. Unfortunately I was not able to find it through the counties. I also did very broad searches online. I've been looking for this certificate since August.

does anyone know of an alternative solution for this problem?

@Salina Robbins

If the amount are so small why don’t you just pay them off at closing?

Hi @Al Pekerman

I'm not sure if paying these liens are necessary. I'm also not sure if eliminating these liens ensures protection going forward. Which is why I'm open to a step by step alternative even if that means paying out of pocket as long as it protects my investment.

@Salina Robbins

Regardless title insurance will only cover the price you paid and not the additional money you we’ll spend on the rehab. I’m not sure what you are exactly worried about.

Oh, okay... 

I miss understood the effect it has on the ARV. Thank you for that! Are you able to point me to a resource detailing this information?

@Salina Robbins

You can ask the title company they will tell you the same. No source something learned through experience.

@Al Pekerman Thank you!

@Salina Robbins you may also want to ask the title company about adding an exception for these liens. So basically you’d have title insurance, but if bank A, B or C comes back, you’re responsive for those.

Basically you’re taking the risk for those known title issues, and the title company is taking risk for the unlikely event of other title issues - like they normally do.

Then you have however long you own the house to resolve those and there’s no time crunch.

(Far from a title insurance expert, but have had to navigate my fair share of closing issues)

@Mike McCarthy

Thank you! I will look into this