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Updated almost 7 years ago on . Most recent reply
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Fix and flip help Un-clear title
To try and make a long story short I purchased a property from a wholesaler 5/17 last year and got funding to flip. Come to find out title was not clear. When we reached back out to the Title agent whose name I shouldn't disclose we were told that 2 uninterested witnesses were needed to sign an heirship affidavit in order to clear title because the original Title agent falsified the commitment. Here is a brief explanation of the email that was sent 7 months ago and I still haven't been able to clear title. We found out that title was not clear 2 months after construction had already begun.
They informed me that ###### has concerns that the title company who handled your closing,##### Title Services, and specifically B###### E#####, is involved in criminal activity which may have affected the validity of the purchase of the property and our loan transaction. We have opened a case with the Fraud Unit of the Texas Department of Insurance case number ########
###### did not receive our lenders title policy although we have requested it numerous times. We called the policy underwriter,####### when our attempts to obtain it from ##### Title failed. ##### told us they were not aware of our transaction. They stated that they did not issue the title commitment we had in file on their letterhead, and they confirmed it was falsified. Further investigation revealed that ######## is not licensed to do business in the State of Texas, and ######### is apparently a disbarred attorney.
######### is engaging counsel to look into this for us, and title issues that may be uncovered to protect our investment.
Flash forward to today, I still haven't been able to find the closing title agent and cannot track him down for answers. I've recently hired an attorney to help track the witnesses that we obtained through the hard money lender to clear things up but he's a busy man I've been following up with him daily to get answers but I haven't heard anything in weeks. I'm running out of options and funds to carry the hard money loan that was taken out to fund the project.
I currently have 4 options:
Dump the property to someone that can handle this situation
Partner with another investor and possibly split profits once the project is complete.
Clear title, move forward with the projects
File suit against the title agency that falsified that documents and commitment.
I would love to clear title and put this project in motion because the numbers are awesome on this property but I work 65 hrs a week and understand that I cannot do it alone.
If anyone has any ideas please help.