REO title insurance question

[Tonya Thompson]

Hi all newbie here

We are considering purchasing a REO from ditech. The REO manager stated he normally "closes" and signs paper work at a nearby restaurant by his house. The deal was to be done as an owner finance.

We want to get title insurance and told him that we would get our own title company for the closing. We wanted to have something to protect us. Also ditech does not have very good reviews listed. 

The REO manager then states that we will need to close with him first and he will put something in the document that states we have 30 days to get title insurance and do whatever title work or due diligence and in that 30 days we can get our money back.

Is this legit? I thought title insurance is done before you close?