Title issue on forclosure

[Jerry Brodginski]

Currently in the process of purchasing my first foreclosed property in Pa. During title search; my title co is claiming the lot dimensions are incorrect and this issue has been recorded for over 100 yrs, due to property transferring in family without title searches.

Given this, my title co will not offer insurance, until this issue is corrected, my closing is delayed and I am asked to sign another future close date with some doubt with my RE agent's this issue can be resolved. My question is what are the future ramifications, if I decide to forgo the title insurance, keep the deed the way it is and plan to refinance in the near future and possibly sell at some distant future?

Thanks a ton for any help, suggestions.

[William D.]

Short answer: If you can't get title insurance now, no one else will be able to in the future. Therefore, you won't be able to refi and put conventional money on the property; nor will a future buyer be able to get a mortgage to purchase the property.

I had a similar situation and closed the property cash. Then I did the title curative work on my own. I had to open up a few probate estates nunc pro tunc and get a quit claim deed from a relative. Cost me a couple hundred dollars to fix. It can be done.

Check with a local real estate attorney or even ask the title company EXACTLY what they want remedied. You may find a useful agent who can give you some guidance.

Good luck.