For any wholesalers out there, how are you reducing the number of deals that fall apart at the title company due to liens or defects? I've been stuck with title search fees a few times this summer, so I am refining how I screen deals before sending them to the title company.
For example, my last seller bought his property without a title examination. I didn't discover this until the title search. After that failure, I now ask all sellers if they purchased their house with title insurance.
I am good with searching for mortgages and municipal liens, but not so good at screening for bankruptcies and judgments.
- If there was a bankruptcy, how are your determining if this will impact a sale?
- If there is a judgment recorded, how are you determining the unpaid balance?
- What other screening methods are you using?
Great questions Matt!
I wish I knew the answers. I'll be checking back in to see the answers.
Hmmm. Bankruptcies, sign up for PACER so you can look at the filings (although I admit I don't know why the BK is an issue. Either the owners have the right to sell or they don't but I am probably missing an approach or something there). Other liens etc. I run an O&E report. My title company charges me $5.00 for that. While not title insurance, it is the report on which they will base their title insurance policy. Judgments......call the lien/judgment holder and ask for a payoff. If you don't want to do that yourself, order full title from your title company and ask them to do it. It will cost you but they are quite good at getting the right answer,
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