Do most note investors shy away from Torrens title states?

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Do most note investors shy away from Torrens title states?

Matt Skog
Minneapolis, MN · Member since 2016 · 60 posts · 18 votes

It seems to me that many note investors intentionally avoid Torrens. Does that make it tougher to structure profitable deals?

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  • Chris SeveneyBusiness Member
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    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @Matt Skog

    Never even heard of it before this post and googled it. It’s in 10 states and voluntary.

    Why would someone avoid them ? It provides a way of showing clear title.

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    7y

    @Matt Skog

    Illinois eliminated use of the Torrens system in 1992. Why? Well, for one thing the lenders didn’t have any insurance in case of title defect, only the property owner did. So, lenders were insisting on title insurance anyway. Also, when any type of Torrens claim was made, or a document needed, there was a two year backlog. Typical government boondoggle.

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