Fast closing on a for sale by owner

[Allen Lopez]

So there is a property that is for sale by owner. It’s a really really good investment and one could say “it’s too good to be true”. Because of its great condition and price, I wanted to do a fast closing (ASAP). I wanted to buy the property as is. I would be paying cash so there shouldn’t be any delays on my part.

1. What is the fastest closing a tittle company can do.

2. Does it matter if the seller has a loan on the property? What if she owes more than the property is selling for. Am I going to be responsible for the rest?

3. I have bought one property for sale by owner and didn’t have any issues. Any legal issues that I need to be careful with?

4. Of course I will get tittle insurance. Is there any other heads up anyone can give me?

Thank you!!!

[Peter Walther]

Call me paranoid but anytime I hear of a property priced well below its readily observable value I immediately think fraud.  Either the seller knows something bad is coming down the road and wants to get out of town before it arrives or you're not dealing with the real owner.  Keep in mind your title policy will only pay you up to the amount of insurance for a covered claim so if you pay $50k for a house you think is worth $150k, the policy amount is $50k since that's what you paid and the deed turns out to be a forgery resulting in a failure of title you only get at most $50k.  Even if you put $25k in repairs the day after you close, your self insured for that amount.