Subject 2 Title Question in Houston

7 Replies

I'm looking to take over a mortgage and the title search shows that the sole owner, per the filed deed, was married and divorced during the period of ownership but the ex was never on the deed.  I would like to get the ex to sign a quit claim but I don't think that will be possible.  Will I be able to get title insurance if the sole grantor signs?  Any thoughts?

Hey @Cory Boren

 I don't know the answer to your question but if you are able to get in touch with the ex and she is not willing to sign the quit claim deed, and if the deal is a great deal after you have done your due diligence, perhaps offer her some sort of compensation in exchange for her signing a quit claim. Then rerun the economics of the deal with the additional compensation factored in, and if it still pencils then I would still move forward. I would also check with a real estate attorney to make sure that the approach is legally enforceable, as a safeguard.

@Cory Boren , it's been a while since I did an sub2 deal, but I know you can always order an Abstract of Title to see the chain. There are title companies that will work with deals like that. I'm not sure if they offer title insurance on Sub2 deals, but they can assist with closing. Patten Law firm & Homeland Title are two local companies to check with (no affiliation).

Thank you everyone for the advice. I researched real property records and the grantor. I found a child support lien on him which I believe can be placed on non exempt property.  It is not attached to this property at the moment but I'm not sure if after he signs over the deed they can hold me responsible when I sell.  I may have to base the purchase on a cash flow basis only. 

Cory Boren