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

Property Insurance Questions & Discussions 12 Replies

Just as the title says. Any help would be appreciated.

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:

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

100% Necessary!

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

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

Tim Wieneke, Goodmen Property Inspections | [email protected] | 813‑574‑0155 | http://www.goodmenpi.com

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.

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

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.

Medium lishproplogoJ Scott, Lish Properties, LLC | [email protected] | http://www.123flip.com

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?

Tim Wieneke, Goodmen Property Inspections | [email protected] | 813‑574‑0155 | http://www.goodmenpi.com

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.

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.

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