Is title insurrance necessary if you pay cash for a forclosed single family home?

13 posts by 11 users

Medium 1399283544 avatar decal Rey Francis
15 Posts
0 Votes
1 Award
Medium 1398787509 avatar rehab702 Richard Warren
Real Estate Investor from Las Vegas, NV
1826 Posts
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Richard Warren

Real Estate Investor from Las Vegas, Nevada

Feb 03 '09, 10:50 PM


I would never buy a home without title insurance. The cost of the insurance is cheap in comparison to the risk you take by going without it. This is not an area where I would look to save a few dollars.

:cool:


Edited Jun 26 2010, 07:09


Medium 1400603508 avatar taz Account Closed
Manhattan, NY
805 Posts
44 Votes
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Account Closed

Feb 03 '09, 10:59 PM


Richard is absolutely correct. It is cheap to buy and expensive as hell if you need it and don't have it.


Edited Jun 26 2010, 07:09


Medium 1398860206 avatar gogladiator Harrison Painter
Indianapolis, IN
762 Posts
110 Votes
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Harrison Painter

from Indianapolis, Indiana

Feb 03 '09, 11:41 PM


100% Necessary!

The risk is not worth the reward on this issue......


Edited Jun 26 2010, 07:09


Medium 1398786955 avatar timwieneke Tim W.
Inspector from Tampa, FL
4558 Posts
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Tim W. Donor

Inspector from Tampa, FL

Feb 12 '09, 12:09 AM


It's especially necessary because you are paying cash. By paying cash, you are taking on every iota of risk.


Edited Jun 26 2010, 07:14


Medium 1399292835 avatar venomousviper Rich Weese
Real Estate Investor from sioux falls, SD
5484 Posts
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Rich Weese Donor

Real Estate Investor from sioux falls, South Dakota

Feb 12 '09, 12:23 AM
3 votes


I might be splitting hairs here, but anyway... I buy a lot of homes on courthouse steps. I do not have title insurance on them until I sell. Your question says "Foreclosed" so I assume that means you're purchasing AFTER the buyer(bank or investor) bought at the sale. I agree they'd need ti at that time. I've never encountered a problem buying at courthouse and NOT getting title insurance. Rich.


Edited Jun 26 2010, 07:14


Medium 1399405173 avatar johncm John M.
Residential Lender from Sacramento, CA
19 Posts
1 Vote
1 Award

John M.

Residential Lender from Sacramento, California

Dec 17 '09, 10:56 AM


never neccassary. But the first time you need it............. you may have a change of heart.
To cheap to even mess around with.


Edited Jun 26 2010, 10:53


Medium 1448323426 avatar jasonscott J Scott
Investor / Business Guy from Ellicott City, MD
15816 Posts
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J Scott Verified Moderator Donor

Investor / Business Guy from Ellicott City, Maryland

Dec 17 '09, 10:35 PM


Most REO transactions will have the seller (the bank) pay for the owner's title insurance policy as part of the agreement, assuming you use the seller's closing attorney.

So, if you're paying cash and don't need a lender's insurance policy, it's probably free anyway.


Edited Jun 26 2010, 10:53


Medium lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Website: http://www.123flip.com


Tim W. Donor

Inspector from Tampa, FL

Dec 18 '09, 08:18 PM


Jason's right. I never thought about it but I've never ordered title insurance but it's always been a part of the closing. I wonder if that's law?


Edited Jun 26 2010, 10:54


Medium 1448388825 avatar stevebabiak Steve Babiak
Real Estate Investor from Audubon, PA
11751 Posts
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Steve Babiak Verified

Real Estate Investor from Audubon, Pennsylvania

Dec 18 '09, 10:28 PM


The REO I have under contract is one where the seller is NOT paying for title insurance - so I am, since it is affordable compared to the risk of avoiding it. I am with Rich on courthouse purchases; on those, it is kind of challenging to get title insurance before the purchase - but on the resale it is always going to be the buyer who will want it.


Edited Jun 26 2010, 10:54


No avatar medium Account Closed
OR
1486 Posts
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Account Closed

Dec 30 '09, 01:02 PM


Rey, the foreclosure does not wipe out every kind of lien. If there is something on the title, you sure want to know about it. Title insurance is cheap.


Edited Oct 3 2015, 06:50


Medium 1399289709 avatar blackhawk99 Mark Yuschak
Residential Real Estate Broker from Grand Blanc, MI
881 Posts
288 Votes
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Mark Yuschak

Residential Real Estate Broker from Grand Blanc, Michigan

Dec 30 '09, 08:15 PM


I always buy a title policy no matter how little the price of the property.


Edited Jun 26 2010, 11:02


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