When buying a REO property, does the Title of the home need to be free and clear? Meaning no liens, judgements, etc.?

Asked by Acer23, Dallas, TX Sun Apr 15, 2012

I am in the process of buying a REO property in which we should close by the end of this month. However, my lender said that the Title needs to be corrected before they can submit the closing doc's to the title company. The title apprantely has the seller's and bank name on it. My lender needs the title to show only the Seller's name. Has anyone ever been in this type of situation and if so, how long did it take to have the title corrected so that your buyer could finally close on the home? Thank you

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Dallas Texas, Agent, Dallas, TN
Sun Apr 15, 2012
Where is your buyers agent to explain all these particulars for you ? Not invovled in real estate transaction it can take a day to weeks , so no professional can render an opinion regards to another organizations responsible of handling the task

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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Ron Thomas, Agent, Fresno, CA
Sun Apr 15, 2012
Now-a-days we cannot take anything for granted:

I understand that there are parts of the Country where they do not require Title Insurance;
If this is the case, it would be possible to buy a house with liens on it.
You are probably Okay.
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Bruce Lynn, Agent, Coppell, TX
Sun Apr 15, 2012
REO will typically only have the investors name on it.
Typically buying a REO is the best way to wipe out all prior claims.
Could be they took deed in lieu instead of foreclosed.
It could take a day...could take months.
Best people to ask is title company.
They're the experts.

It would be a rare occasion you could close on a home that is not free and clear of old liens. It's not impossible, but the time to get them resolved is now. There are always all kinds of exceptions, but why would you want to close on a home with a lien that you might be obligated to pay?
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