Price of a title search?

Question

Hi all. Newbie q about title searches.

I just spoke with an overbearing realtor who told me 10 times that I can't buy a home from a bank for just what is owed on it. He also said there is no way to know about other liens against the property, and that a title search alone would be $900.

This sounds so wrong, 3 ways. A title search I thought would be like $100 to $150.

A title search WOULD reveal liens against the property, wouldn't it?

A bank CAN profit from the home sale? This seems wrong.

Can you tell me if he's right or wrong on these counts?

Thanks!

Christina

Rich Hupper · Answer

@Christina G. banks have very strict rules about their REOs. Have have certain brokers they work with for their REO property. Those brokers need to adhere to strict guidelines while marketing the REO. They are obligated to market it to the masses.

Most debt is owned by FNMA and some other huge banks. They do not deal with individual investors / buyers who want to buy their REOS, they give their REOs to local brokers who market them to the masses and look for the highest and best bids.

If you can find an REO owned by a small bank they might deal with you directly however most small banks sell their loans.

The best bet for you is find a homeowner who has equity in their property and is motivated to move. Motivation is the key, or distress.

In my area if the homeowner is distressed the property will be distressed too and need work.

Try to find someone going through a divorce. Their properties are usually still in good condition.

Rich Hupper · Answer

You can hire a title examiner to examine whatever title you want. I had one done for a property I was interested in and it cost 200. 900 seems very high

A title search will reveal liens however the examiner's skill level will determine if things are missed or not ( title insurance )

A bank can profit from the sale of a home they foreclose on. They have it appraised by a 3rd party appraiser or broker and list it at that number. They list it as fair market value.

Granted most foreclosed homes are beat up, resulting in an asking price below comparable homes in that area.

Some banks put the properties up on Auction websites as well to see if they can recoup more of their loses that way.

Don't worry most banks/investors are not making out like bandits when they sell a foreclosed property. Their collateral by the time they get a hold of it, is usually in bad shape.

Remember they never wanted to foreclose all they wanted was their P&I payments.

Rich Hupper · Answer

When you are interviewing agents you can ask them if they specifically get a lot of bank REOs. However in that case agents will be representing the banks unless you and the agent and you sign a buyer agency agreement. In that case the agent is a dual agent and really cannot represent either you or the bank properly. The banks might even forbid their REO agents from working with buyers in this manner.

I would simply find a knowledgeable buyer agent to help you buy a property. Sign a buyer agreement with them, that way they have a fiduciary duty to put forward your best interests. Otherwise they are only facilitators.

Christina G. · Answer

How does one find the broker representing the bank?

Is it wise to try to buy a house from the same bank fronting the mortgage?

Dalton Osmanski · Answer

I would talk to a professional in your area to get help from and $900 seems steep for a title search.

Christina G. · Answer

Specifically, HOW do I find a realtor who IS willing to look for REO not yet on market?

Christina G. · Answer

Thanks! I'm a little unnerved by the overbearing realtor. HOW do I find a realtor who can help me find a home far below market? This is vital to my sanity - I need to move now, and I'm not afraid of a fixer. I just need someone to play ball. This guy was all like "I wouldn't even ASK." He was SO Glengarry Glen Ross.

Price of a title search?

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