Title Insurance Title Not Insurable

[Eddie T.]

Hello all, I am currently interested in a single family home in memphis as an investment. It is a normal sale from owner and is currently occupied. The owner has stated that about 10 years ago this property was in a tax sale. In 2009 a new home was built on this lot. Now i am planning to buy this home cash. And as per the owner their are no liens on the property but all the title companies he has contacted won't insure it.

What risks would I take by purchasing a home where the title cannot be insured?

Those of you that own sfr investments would you do this deal or walk away?

[Jon Holdman]

Write a contract with this seller, take it to a title company and ask them to do a title committment. That will reveal the issue. Then you can evaluate your options. Without knowing the issue you really have no idea what's going on. Worst case is he doesn't even really own the house. So, the risk is that you could buy it and find out you've bought nothing.