Purchasing HUD home cash and Title Insurance

[Sean Dieden]

I am currently under contract for a HUD property that I am paying cash for and set to close at the end of the month. I have a couple of questions about title insurance and costs. I know that HUD doesn't provide title insurance so I am looking to obtain it for the purchase. The title company's rate card states $100,000 and under will be $1325, escrow charge/fee of $935, and lawyers cost is $400. What are the concerns and risks my lawyer might have in writing this policy for the purchase? Does HUD provide you with clear title to the property before closing? I understand there could be items that where not recorded, but that is why I am purchasing title insurance.

My other question pertains to a buyer that I have secured to purchase the property from myself after I close. Do I have to obtain another policy to offer the potential buyer and pay all these expenses again to close. How can I save money on a double close. I know HUD properties cannot be assigned so double close is my best option. Any feedback from the BiggerPockets community would be highly appreciated.Thanks,

Sean

[Jon Holdman]

Shop around and you might find title insurance cheaper.

Do a "hold open" on the first title policy then have the title company reissue it when you sell.  You will only have to pay the premium for the difference in the two prices.  Verify the title company will do this before the first closing.