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Updated over 9 years ago on . Most recent reply

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Muhammad Abdullah
  • Investor
  • Cleveland, OH
39
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145
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How Can I Get A Title Cleared If I Can't Find The Person?!?

Muhammad Abdullah
  • Investor
  • Cleveland, OH
Posted

I purchased a property at a county tax auction, and rehab the property and put it on the market just to find out that there are liens from the previous owner whom I can't find.

What can I do?? the title company is of know help even if I find the previous owner what am I supposed to do tell him to pay his bills...

Most Popular Reply

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Rick H.#4 Marketing Your Property Contributor
  • Lender
  • Greater LA/Orange County area, CA
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Rick H.#4 Marketing Your Property Contributor
  • Lender
  • Greater LA/Orange County area, CA
Replied

The keyword term "quiet title" brought me to this thread.

To briefly expand, title company's is in business of selling title insurance, not fixing YOUR title problems. Each title company presents their 'offer to insure' called a preliminary report, subject to their interpretatation of status of title and their list of exceptions, if any, which are the 'fine print'.

Generally, prior to a quiet title or other lawsuit requiring notice to other parties of interest (including creditors) a litigation guarantee is the product offered, naming all those parties that requiring noticing, including any government agencies. 

When personal service is required, some of these persons can be difficult to find. This is when skip tracing services can be utilized. 

In my state, CA, noticing has become an increasing difficult issue. We have the ability to petition for an Order to Publish in order to comply with noticing missing parties, however a licensed private investigator must first be employed to document and certify all attempts to locate the missing parties. 

Essentially, these delays cost time and money and we build them into the deal analysis. Getting this step comleted can easily add another 4-12 months (incredibly).

Then there's the matter of court prove up on default at your hearing. 

This is obviously not a matter for an amateur real estate person as it requires much knowledge of state laws and local rules of court.

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