Title Insurance After Sheriff Sale
First of all, let me say that this is a GREAT site. Very informative!
We have an REI partnership company and have been mostly purchasing rehab/multi-family homes. We are researching the foreclosurearea and one of the concerns I have is getting Title Insurance on a property after a successful bid at the Sheriff Sale. It would be difficult to sell the property without it.
Do we need to conduct a "quiet title action" or are there easier ways to go about getting it.
Any suggestions/opinions would be greatly appreciated.
Thanks,
Tom
What I do is get the title search done and ask for a policy commitment, that is basically a guarantee that they will write a policy on that title search. Then the morning of the auction get an update on the search, make sure the policy commitment is still in place. When you win the Sh. sale bind the policy.
Tom
If your sole reason for T/I is for the sale end of it ,you would be Clear at sale.
You have purchased a Sheriffs sale, you turn and rehab and put for sale.
When your buyer is ready to come to the table you want a Title co to handle the escrow so they may due a full search and clear the foreclosure( make sure it was done properly)
They will in turn issue a owners policy and a lenders policy if a lender was used.
The owners protects the incoming buyer that YOU held title clear to be able to sell to them.
If you want the policy for you after sale the same could be done but you are going to spend money that you do not need to.
The only point we have moved to quiet title action is in the rare instance there was an error in the court that can not be removed..
Some title co due not like Sheriff sale property and it is only due to the fact they do not understand the foreclosure end. Some of us have the view that a foreclosure has less danger than a new construction. After the sale you have a judges signature clearing the way to sale and if anyone had intrest in the property there was a court action that they could have came forward and made claim.
I hope this helps
Brad
Not sure about how it is in NJ, but I've never had a problem with a title company issue a policy in Illinois on a homes we bought at the auction.
Thanks everyone. I appreciate the input.
I am going to speak to a Title company that we have used in the past and see what their policy/procedures are.
Tom