I can't get title insurance, should I back out?

[Dan Grove]

Hello friends,

I have had an offer accepted on a house and found it its a foreclosure that is being sold by a debt collection agency.   They will not offer title insurance.  If a full title search doesn't show any issues do you think I should buy the property?  Again, I will only buy the property if a full title search by a title agency doesn't find any problems. 

Its a good property that I can BRRRR and get good rent on so I am biased on taking the gamble but I need some unbiased and more experienced opinions.

Thanks
Dan

[Randy Rodenhouse]

I am somewhat unclear... is this an REO being sold? Has it already been foreclosed and owned by the seller? If buying an Real Estate Owned (REO) the yes possible to get title insurance. An REO sale has fewer risks than a courthouse sale, so it's easier to get a title policy for the property. For a courthouse foreclosure, you may be able to do a title search. However, until you take ownership of the property, you won't enjoy the full rights to title insurance. That's why it's better to buy the insurance through an REO sale rather than the courthouse process. Also, you said "they" would not offer title insurance. Who is they? I would check with a few title companies and see if you can get title insurance.