Problem With Insuring Title.
Recently purchased a pre-forclosure property. The owner said that she was in bankruptcy, but was not anymore at the time of our conversation. We did an equity purchase, closed and while going thru refinance found out that Title company would not insure the Title, because of the bankruptcy. Title is being held by the bankruptcy court. What is the best way to proceed in this situation.
Thanks. <IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by agabovich on Date 03/12/2004 ]
wow need to call MAACO...... sorry but as john locke and the rest of the pros say........always do your title search before making any deals.... this way you CYA, Cover Your Ass...
always need to check the title cause once you take it over it's all yours plus everythinkg that accompanies it....
I suggest you get John Lockes Sub to course to make sure you never do something like this again. Best wishes
Naughty, naughty, but thats yesterday. Today, you contact the Court appointed Trustee. Make an appointment and see the Trustee and ask for a requirement to release lien or title. Mostly a matter of money or you prove with an appraisal that there is no recoverable equity in the property. Step with care. Always be a "Friend of the Court" Ya just trying to do the right thing. Once you have that go back to your title company and connect with the Arb Officer. "Arbitrary Decisions on Title." He will then give you a requirement to insure. You then fullfill that requirement. Might need another Quite Claim Deed from prior owner. Of course the simplified method is just a Quit Claim Deed from the Trustee or Referee in BK.
Look at it as a learning experience and the good part is you are now going to meet some folks that you would never never normaly meet. Use these contacts to also set up future lines.
enjoy If it gets stuffy message me I like messes. Lucius [ Edited by Lufos on Date 03/12/2004 ]
How do you do a title search?
Newbie????????????/
Dear Mary Ellen,
Shhhh we do not do them anymore. Of course remember Attornies used to do them and they were then called Abstracts. Of course they did not insure they just gave you an opinion on title.
If you really have the urge would be happy to instruct you in this archaic procedure. Of course I can also instruct you in how to make Greek Fire, or the proper position to utilize when firing a cross bow. None of which is applicable to modern times
Short cut: Pick up the telephone and call a title company. First American Title, or Chicago Title or Commonwealth Land title. All of these darby persons should be in the telephone book under, are you ready for this? Titles,or Real Estate Titles.
When a voice answers ask for Customer Service and you are ready to go. Just the address will do unless you are really getting into all of this Real Estate Investing stuff. Then give them an Assessors Number, Legal Description etc etc. etc I suggest just an address. Remember at their salery you really do not want to put any additional strains on them. Besides talk nice, make a friend, who knows you may need them and now guess what? You have a friend at the title Co. Worth while.
Cheers Lucius
Thank you Lufos,
We are actually in the process of geting a Quit Claim Deed from the previous owner. We also are planning to see a real estate attorney, how useful do you think that is in this situation?
Damn you are doing fine, why post you are ahead of us. the Quit Claim Deed. Be sure you get it notarized at time of signing and also take a Statement of Identification for the title co. They like those things. Want to have fun? Tell the title company to file it as a Master. That makes them think there is a lot more business coming and they then bend backwards to help. Love watching that happen. I do not think you need an attorney, unless it makes you feel better. I think the experience of handling this matter is a big plus factor in your education. You can always bring him in latter. Most Attornies will just let you do all the running and advise you. Whatever turns you on. All of my ex wives got attornies, spent lots of money. I just filed General Denials and ask for depositions. Worked just fine. That is for them.
Cheers Lucius
I sure wish my state would do away with Abstracts; only the big metro area has. I think the title company/lawyer lobby likes them too much or something, it's a whole arcane industry complete with calligraphy. Abstracts do tell interesting stories though; reading on I learned that a woman died in the basement of one of my places back in the sixties (which prompted me to look for treasure there for some reason, to no avail). Those of you in straight Title states, count your blessings. They sound a whole lot simpler!
Hi, Lucius. This property was supposed to go on the auction 2 days after we paid off the deliquient loan. My understanding was that a property can not be sold at the auction when in bankruptcy.
Please help.
Thanks,
Alexander.
Yes you are most correct, but you would be amazed the way these humans keep working away at all the rules..Here is how you do it. You as Trustee about to do a sale, make application to the Trustee in BK and get a signed release. How do you do this? Very Simple, You lie. State there is no recoverable value above the actual amount of the note being foreclosed on. If there is the usual courthouse old boys network. Everybody agrees and the sale is held. Of course if you are a mangy non conforming elderly spoil sport, you can then file an action in Court to have the sale set aside. People will hate you but it is not hard.
Does this help. I admire your ability to complete transaction two days before the sale. My that must have increased the old heart beat. But you did well, I complement you on a job well done.
Cheers Lucius