Do I need to do a title search on a REO?

Asked by Janel, Honolulu, HI Tue Mar 17, 2009

Or can I assume a bank will deliver a clean title? If I need to do one, how do I go about doing so?

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James Gordon…, Agent, Hamilton, OH
Wed Mar 18, 2009
YES I have run into properties where there are 2 parcel numbers that should have been forclosed on. Through some error only one APN was filed on so the lender owns one portion and they have to forclose on the other portion yet.
A title search on the property for the buyer is cheap compared to the cost of a property. Title insurance normally paid for by the lender is a good thing to have but check into the upgraded policy as the lender paid for policy may not cover a whole lot.
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Keith Manson-…, , Milwaukee, WI
Wed Mar 18, 2009
If you are getting a loan the bank should get a title policy to make sure their investment is secure. However, if you are paying cash you should be getting a title to insurance that you have clear title. Hopefully you have a buyer real estate agent helping you through this process. If not, go back to the contract to see what your rights are and what is the responisblity of the bank . The person before, is correct that the transfer from the bank is most likely going to be with a special warranty deed (meaning the banks only is warranting the time they have held the property. If you want to contact a title company directly you can contact a company like Fidelity title or First American title. First confirm if your title will be taken care of in your transaction before incurring an additional expense.
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Bonnie Tegge, Agent, Virginia Beach, VA
Tue Mar 17, 2009
The bank will issue a Special Warranty Deed. They cannot guarantee title any further back than when they foreclosed, but they often times pay for an Owner's Title Policy at closing that will cover you for any losses incurred should someone show up with a valid claim on the property. In EVERY case I've dealt with in foreclosures here in Virginia beach, this has been the case. Also, the Title Company or Closing Attorney you chose should do a title search on the property before the close of the transaction on the property.
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